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The Government of the Republic of Serbia

In the service of citizens

Serbia's credit rating unchanged despite coronavirus crisis

Belgrade, 28 March 2020

The Ministry of Finance announced that, despite a coronavirus crisis affecting all world economies, Fitch Ratings affirmed Serbia's BB+ credit rating with a stable outlook for further improvement.

The Agency estimated that the well-balanced budget for 2020, the fiscal discipline of the government of Serbia and the amount of deposits, provide ample fiscal space for post-crisis response.

In particular, the Agency points out that growth in investment investments exceeded expectations in the fourth quarter of 2019, and that this trend continued into 2020.

Serbia's rating is more resilient to the shock caused by the coronavirus, owing to the low impact of tourism on the economy, increased foreign exchange reserves, the positive effects of lower energy prices and the moderate participation of non-residents in public debt.

It is also good that inflation remained low and stable at 1.9 percent in February.

Another good indicator is the growth of Serbia's foreign exchange reserves, which have increased by more than two billion euros in the last year.

The significant and constant decline in the share of general government debt in gross domestic product is estimated very positively.

The Agency's report notes that significant progress has been made in improving tax administration and managing public finances.

The Agency also welcomes the strengthening of the banking sector.

The commitment of the Serbian government to maintaining the continuity of current economic policy, as well as the successful implementation of structural reform measures, is particularly emphasized, which the agency cites as key factors for increasing the credit rating in the forthcoming period, the statement said.