Fitch confirms Serbia’s rating, they expect FAST RECOVERY from the shock caused by the crisis
In its report, the Fitch rating agency has confirmed Serbia’s credit rating at the level of BB + and kept stable prospects for its further increase, the Ministry of Finance stated.
Fitch states in the report that the confirmation of the credit rating was primarily supported by the good economic results of Serbia, both before the pandemic and during the crisis caused by the coronavirus pandemic, and that a quick recovery from the shock caused by the crisis is expected, thanks to appropriate economic and fiscal measures of support to the economy and citizens of Serbia.
The report states that due to the successful macroeconomic policy, which has been implemented in recent years, Serbia entered the crisis much better prepared and with well-balanced finances, and that despite the crisis, a good basis for sustainable economic growth has been created.
According to the assessment of that agency, Serbia will achieve significant economic growth of as much as 5.2 percent in 2021.
The Fitch rating agency states that the general government debt dropped significantly to 52.9 percent of GDP at the end of 2019, compared to the end of 2016, when it amounted to 68.8 percent of GDP.
The agency estimates that foreign direct investment in the previous period, despite a slight decline in the first seven months of this year, will be sufficient to fully cover the current account deficit and it predicts that it will reach an average of 6.1 percent of GDP in the period 2021-2022.