Standard & Poor’s upgrades Serbia’s credit rating outlook

S&P Global Ratings said it has upgraded its outlook on Serbia to positive from stable on improved fiscal and external profile while affirming the country’s ‘BB+/B’ long- and short-term foreign and local currency sovereign credit ratings.

 “The positive outlook reflects Serbia’s strong macroeconomic outcomes in 2023 and the possible further improvements in its external and fiscal performance,” S&P said in a statement on Friday, adding it projects the country’s real gross domestic product (GDP) to expand by 3.3% in 2024 and to accelerate to 3.8% on average over 2025-2027.

The rating agency noted Serbia’s transfer and convertibility assessment is ‘BBB-‘.

In October, S&P estimated the country’s 2023 GDP growth at 2.1%, anticipating that it will quicken to roughly 3% on average over 2024-2026.

The Serbian economy expanded by 2.5% in 2023, statistics office figures showed earlier this year. The Serbian government said in January it sees Serbia’s economic growth quickening to 4.3% in 2026, from a projected 4.0% in 2025 and 3.5% in 2024.

Also in January, the World Bank said it expects Serbia’s economy to expand by 3% in 2024, and by 3.8% in 2025.

“Resilient economic growth should allow the Serbian authorities to improve fiscal metrics,” S&P said on Friday. “Stronger external buffers alongside ample and increasingly diversified net foreign direct investment should help Serbia to mitigate possible balance of payments risks.”

(Danas, 08.04.2024)

https://www.danas.rs/vesti/ekonomija/kreditni-rejting-srbije/

This post is also available in: Italiano

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