Fitch keeps credit rating for Serbia at BB-

The US credit rating agency Fitch has confirmed that the credit rating for Serbia for long-term borrowings in local and foreign currencies remains at BB-, with a negative outlook.

According to www.stockmarketwire.com, Fitch has also confirmed that Serbia's credit rating for short-term borrowings in foreign currency is at 'B'.

According to Fitch, Serbia's fiscal deficit grew to 6.4 percent of the gross domestic product (GDP) last year, despite the government projection that it would be at 3.6 percent, as a consequence of the pre-election consumption. The government then adopted a revised budget in order to put public finance under control. However, Fitch expects that the budget deficit would remain close to 6 percent of GDP in 2013 and 5 percent in 2014.

According to Fitch's estimates, Serbia's public debt is growing quickly, which is why it could reach a level of 65 percent of GDP by 2014

Fitch also pointed to the fragility of economic recovery, voicing an expectation that Serbia's current account deficit would drop to 7.1 percent of GDP by the year's end thanks to a strong growth of export.