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Successful fiscal consolidation to lead to better credit rating
Belgrade,
16 December 2016
The Ministry of Finance announced that the agency for evaluation of credit rating S & P Global Ratings confirmed the credit rating of the Republic of Serbia as "BB-" and revised prospects for improving credit rating from stable to positive.
The statement by the Ministry of Finance says that the main reasons for the improvement of the credit rating of the Republic of Serbia are successful implementation of the fiscal consolidation programme and opportunities for further improvement.
S & P Global Ratings believes that the commitment of the government of the Republic of Serbia to reduce expenses and a better revenue collection will help stabilise the fiscal deficit in the medium term.
According to this agency, the positive fiscal trends are a result of a better collection of tax revenues, primarily from value added tax and excise duties, as well as of non-tax revenues.
The agency estimates that the Republic of Serbia recorded a real growth of 2.7% in 2016, primarily based on the growth of investments.
The rating agency points out that the Republic of Serbia has improved balance of payments position and it is expected that the deficit of the current account deficit will be reduced to below 4% of GDP in 2016, compared to 8% of GDP on average for the period from 2011 to 2014 and is projected at the level of 3% of GDP on average for the period from 2017 to 2019.
The improvement of the balance of payments position is primarily due to the growth of net exports, it is said in the statement.
S & P Global Ratings believes that the commitment of the government of the Republic of Serbia to reduce expenses and a better revenue collection will help stabilise the fiscal deficit in the medium term.
According to this agency, the positive fiscal trends are a result of a better collection of tax revenues, primarily from value added tax and excise duties, as well as of non-tax revenues.
The agency estimates that the Republic of Serbia recorded a real growth of 2.7% in 2016, primarily based on the growth of investments.
The rating agency points out that the Republic of Serbia has improved balance of payments position and it is expected that the deficit of the current account deficit will be reduced to below 4% of GDP in 2016, compared to 8% of GDP on average for the period from 2011 to 2014 and is projected at the level of 3% of GDP on average for the period from 2017 to 2019.
The improvement of the balance of payments position is primarily due to the growth of net exports, it is said in the statement.
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