This makes Serbia the first country in the Western Balkans and the only EU candidate country to achieve investment-grade status.
According to the Ministry, earlier this year, all three rating agencies indicated positive prospects for Serbia’s credit rating upgrade. Now, with the upgrade to investment status from one of these agencies, Serbia is expected to see increased foreign investment and significantly lower borrowing costs in the capital markets.
The “S&P” report highlighted that the rating upgrade reflects Serbia’s strong macroeconomic resilience to external shocks and disciplined macroeconomic management, with expectations that future policies will be similarly guided.
Strong domestic demand, partly supported by state infrastructure projects related to Expo 2027, has led to an upward revision of GDP growth estimates to 4% in 2024 and beyond.
The report further noted that stable GDP growth and sound macroeconomic policy will help contain fiscal pressures and maintain public debt at an acceptable level.
High foreign exchange reserves, along with increasingly diversified net foreign direct investment, are expected to mitigate potential external shocks and risks.
The report also noted that Serbia’s institutional and economic profile, as well as its growth prospects, remain firm and stable. The growth forecast for this year is higher than the agency’s previous estimate, supported by the implementation of infrastructure projects under the “Leap to the Future – Serbia 2027” plan.
Additionally, the stable outlook for Serbia’s continued progress is reflected in the gradual reduction of dependence on regional political tensions, increased resilience to these tensions, continued structural improvements in standards, and the implementation of ongoing reforms.
Serbia’s growth outlook remains positive due to strong demand and investments related to Expo 2027.
