Moody’s Affirms Serbia’s Credit Rating

The credit rating agency Moody’s has affirmed the credit rating of the Republic of Serbia at Ba2, with a stable outlook for its further increase.

According to the website of the Ministry of Finance, the agency’s report points out that “despite the crisis and all the external challenges, Serbia has managed to preserve a stable economy and investors’ trust, realize a high level of foreign direct investments and keep the jobs.”

This credit rating also reflects the positive results of the fiscal consolidation supported by the recently revised fiscal framework. The structural reforms that have been carried out in the past several years, with the help and support of the International Monetary Fund and the European Union have helped preserve the country’s macroeconomic stability, it is added.

The report says that the outlook for the growth of the GDP in Serbia is positive. It is expected to amount to 1.8% in 2023, whereas a growth of 3.2% is projected for 2024 and as much as 4% for 2025.

Moody’s expects the deficit to be at around 2.8% of the GDP in 2023, which is lower compared to 2022. In the coming period, the deficit is projected to continue decreasing gradually and it is expected to drop to 1.5% of the GDP in 2025.

Moody’s estimates that the tightening of the monetary policy will help gradually bring the inflation closer to the target band of the National Bank of Serbia and that it will drop to around 4.5% by the end of 2024.

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credit rating of Serbia at Ba2

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