In its latest report, the credit rating agency #Fitch Ratings reaffirmed the credit rating of the Republic of Serbia at BB +, with stable prospects for its further increase.
On that occasion, Minister Siniša Mali also took to Instagram.
– Fitch states that Serbia’s rating is supported by credible macroeconomic and fiscal policy, led by the Government of the Republic of Serbia, as well as strong GDP growth during the previous year. Strong growth of economic activity, growth of tax revenues, with the gradual abolition of government measures to support the economy, have affected the reduction of the general government deficit, which in 2021 amounted to 4.2% of GDP. Also, Fitch expects the gradual reduction of the budget deficit to continue, and predicts its reduction to 3.1% of GDP in 2022, and to 1.8% of GDP in 2023.
– Thanks to the strong recovery of domestic demand, in 2021, gross domestic product growth of as much as 7.5% was achieved. Also, GDP growth is expected to exceed the long-term trend in the coming years. The Agency believes that a strong banking sector has been preserved, credit activity has grown, the share of problem loans has been reduced, and timely and comprehensive fiscal and monetary measures have been taken.
– Responsible economic policy in previous years and good economic results, achieved in the period before and maintained during the pandemic, have resulted in stable and sustainable public finances, and the effects of the crisis in the Republic of Serbia have been significantly mitigated – Mali wrote.
The agency notes that the share of general government public debt in gross domestic product has stabilized at 57.5% at the end of 2021 and expects it to return to a downward trajectory, with a projected decline to 52.5% at the end of 2023. The agency also praises the fact that the average time to maturity of the debt has been extended to 8.3 years, from 6.1 years, which was the amount at the end of 2019. The Agency expects that in 2022, debt will be issued primarily in domestic currency, which will lead to an increase in the share of debt denominated in dinars and a reduction in currency risk.
Follow us through iOS and android apps