Serbia maintains BB- credit rating

The US Agency for Financial Services, Standard and Poor's, maintained Serbia’s credit rating at BB- ​​with a positive outlook for its improvement, the Ministry of Finance of Serbia communicated. Fitch Ratings as well kept its BB- for Serbia.

Standard and Poor's estimates gross domestic product (GDP) will continue to grow until 2019, according to Ministry’s press release.

The Ministry transfers the attitude of Standard and Poor's that GDP growth "will be based primarily on foreign direct investment inflow and higher private consumption, which will be encouraged by employment increase, earnings and steady remittances inflow."

The agency forecasts average fiscal deficit to app. 1.9% of GDP for 2017-2020 period. "with a note that structural improvements will require deeper public sector reforms and further restructuring of public enterprises."

This confirmation of Serbia's credit rating assessments reflects the assessment that the Government will continue implementing fiscal and structural reforms, and that the improvement of Serbia's credit rating will be possible if successful implementation of fiscal consolidation is continued, the Ministry of Finance stated.

Standard & Poor's believes that successful completion of agreement audit between Serbia and the International Monetary Fund contribute to investor confidence preservation in Serbia.

Also, a positive trend in foreign trade is visible. The Agency estimates deficit in current account balance, which from 2011 to 2014 averaged 8.3% of GDP, will be on average at a level of 4.0% by 2020, which will mostly be contributed by existing foreign investment in manufacturing activities, as well as improvement of manufacturing and service sectors competitiveness.

In addition to current account deficit reduction, the US agency, Standard and Poor's, expects improvement in the structure of external debt and that foreign direct investment net inflow will fully cover current account deficit of balance of payments.

Fitch Ratings maintains BB- for Serbia as well

The Agency for credit rating, Fitch Ratings, has maintained Serbia's credit rating assessment at the BB- level, with a stable outlook to improve credit rating, according to the Ministry of Finance of Serbia.

The Agency, according to the Ministry, "points out that ratio between public debt and GDP fell for the first time since 2008, and that the share in public expenditure relating to wages fell below 10% of GDP, while public investment increased to 3.3 % of GDP ".

Fitch Ratings expects that the Government of Serbia will continue implementation of fiscal reforms. The rating agency estimates that the fiscal deficit this year will be 1.3% of GDP, and that the current account deficit (estimated at around 4-5% in 2017) will fully be covered by net foreign investment.

STANDARS & POOR'S Denmark

Ministarstvo finansija Republike Srbije

Međunarodni monetarni fond-MMF Beograd

Fitch Ratings New York

Standard and Poors

Fitch Ratings

Ministarstvo finansija

MMF

Međunarodni monetarni fond

kreditni rejting Srbije

BDP Srbiije

finansijski deficit Srbije

fiskalna konsolidacija

Standard end Purs

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