The credit rating agency Fitch Ratings has maintained Serbia’s credit rating at BB +, despite the global crisis caused by the corona virus pandemic, the National Bank of Serbia (NBS) announced. Their report notes that there are stable prospects for an even more favorable investment credit rating in Serbia.
Fitch Ratings estimates that Serbia’s rating is supported by a “credible macroeconomic policy”, which results in keeping inflation low and stable, growing foreign exchange reserves, as well as the resilience of the Serbian economy to the global shock caused by the pandemic.
The agency estimates that favorable fiscal prospects can be expected in the coming period, and points out that the gross domestic product of Serbia (GDP) decreased by 1.0 percent in real terms during 2020.
In their opinion, that is significantly better than the results achieved by the group of countries with a BB rating, where the decrease in GDP last year was 4.8 percent.
As key factors of this result, the agency emphasizes the extensive package of economic measures, preserved labor market indicators and preserved high inflow of foreign direct investment.
Fitch Ratings projects GDP growth of 5.2 percent in 2021, while growth of 4.5 percent is expected in 2022, which they point out will be above the long-term trend.
Fitch Ratings, as it is emphasized, also evaluates public finances positively, stating that the increase in the share of public debt in GDP last year was in line with the trends in other countries that have a BB rating.
In the coming years, the agency expects the trend of reducing the share of public debt in the GDP of Serbia to continue.
Fitch Ratings also emphasizes the resilience of the country’s external position to the shock caused by the corona virus, which was contributed to by the growth of foreign exchange reserves and a larger reduction of the current account deficit in GDP than projected.
Also, the report states that all financing needs in the previous year were met without any problems, Nova Ekonomija reports.
