The National Bank of Serbia announced that the rating agency Fitch Ratings maintained Serbia’s rating at the BB+ level during its regular six-month evaluation, which is one level away from the investment rating, with stable prospects for an increase in the credit rating in the coming period.
The credible framework
The Fitch Ratings agency cites the credible framework of the macroeconomic policy conducted in Serbia and stronger management, human capital, and a higher level of gross domestic product per capita compared to countries with a similar credit rating as key factors for this decision.
The stable outlook for the increase in the credit rating reflects the availability of external financing sources, as well as the adequacy of foreign exchange reserves, which makes it possible to absorb pressures on the country’s balance of payments in extraordinary conditions on the world market.
Inflation estimate
In terms of inflation, Fitch Ratings estimates that, after this year’s price impact from the world commodity market, inflation will moderate to around 7% in 2023, and 3.8% in 2024, broadly in line with the projections of the National Bank of Serbia.
