NBS: Fitch Agency keeps Serbia’s rating at BB+

The Fitch rating agency has kept Serbia’s credit rating at BB+, as well as stable prospects for its increase to the level of investment rating.

In a statement, the Fitch agency emphasizes a credible macroeconomic policy framework, responsible fiscal policy, better management and a higher level of economic development compared to the countries with similar credit ratings, according to the website of the National Bank of Serbia.

The decision emphasizes the stability of the banking sector, as well as Serbia’s increased resilience to the shocks from the international environment, which is contributed to by the continuity of full coverage of the current deficit by foreign direct investments and adequate foreign exchange reserves, which increased despite the pandemic.

The Agency also emphasizes the significant contribution to the continuity of economic policy, to which the preserved political stability in the country also contributes.

The agency also points out that the general government public debt stabilized at the level of 57.5 percent of gross domestic product in 2021 and it projects not only its gradual reduction in the upcoming years but also that the share of public debt in gross domestic product in Serbia will be lower than in the countries with the same credit rating.

The report estimates that the growth of the gross domestic product of Serbia in 2021 was strong and amounted to 7.5 percent, the NBS points out.

It is stated that, unlike the temporary growth of headline inflation, core inflation remained at a significantly lower level compared to headline inflation.

The reduction of inflation to the level around the upper limit of the inflation target is projected by the end of the current year, and at the end of 2023, inflation is projected to be around the central value of the target of the National Bank of Serbia, which is 3 percent.

Izvor: RTS

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