Serbia is rapidly growing in its appeal to investors, due to its increasing stability and friendly business-climate. 

The European Union candidate country has undergone democratization reforms to become a member of the European block, a process that has been underway since 2010, and together with the economic development that has been taking place to generate good credit ratings, domestic and foreign investors are looking to grow in that country.

In this section of the Country Page you will see the latest serbian news in English:

Fitch Ratings rates Serbia as stable, with "BB+" rating

Fitch Ratings announced on February 28 that Serbia was viewed with a stable outlook, being rated "BB+"

"Serbia's rating is supported by its credible macroeconomic policy framework and prudent fiscal policy, and somewhat stronger governance, human development and GDP per capita compared to the 'BB' medians," Fitch said in a statement.

The fiscal deficit in Serbia has narrowed in 2021 to 4.2% of GDP, mainly caused by the rebound in tax revenues and the phasing out of measures that existed during the COVID-19 pandemic. 

The rating agency forecasts that by 2023, the fiscal deficit will be reduced to 1.8% of GDP, supported by new fiscal rules, which are expected to be agreed with the IMF by the second half of 2022.

Public Debt, on the other hand, stabilized in 2021 at 57.5% and by the end of 2023 could fall to 52.5%. The access to funding that was agreed with the IMF would be fully used during the first half of 2022, and with the access to Euroclear settlement would provide a boost to the demand for public debt from the first quarter of 2023.

Gradual progress is expected on structural reforms, including those aimed at improving weak SOE governance and public sector inefficiencies. The opposition, which remains highly fragmented, has announced that it will stop boycotting elections and contest the elections, reducing the risk of social protests undermining the stability of the administration.

In contrast to these positive factors are Serbia's higher proportion of foreign currency-denominated public debt and higher net external debt than peer group medians, as well as a high degree of euroization of the banking sector.

Serbia and China to sign a new Free Trade Agreement by the end of 2022

Other current news from Serbia is that President Aleksander Vucic announced that China and Serbia would sign a Free Trade Agreement (FTA) by the end of 2022. The announcement was made in a video posted in Youtube after a meeting between China’s president Xi Jinping and President Vucic, who attended the Beijing Winter Olympic Games opening ceremony.

According to Vucic, the FTA would “significantly increase trade between Serbia and China and additionally attract foreign investors to Serbia”, as Serbian companies would have direct access to one of the largest markets in the planet.

However, the Asian giant has yet to launch formal negotiation with the Balkan country regarding the FTA agreement, as Serbia has not been included in the list of “FTA under consideration” of the Chinese Ministry of Commerce.

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Serbia's central bank urges against use of cryptocurrencies

The Central Bank of Serbia expressed last March 03 that cryptocurrencies such as Bitcoin are speculative, so it warned the general public to avoid investing in them or from using them as payment methods.

"People who have decided to invest in cryptocurrencies need to be informed that they may risk losing all, or a large part, of their investment," Central Bank Director Natasa Katanic communicated in a video posted on the banking institution's website.

Katanic also pointed out that, according to Serbian law, cryptocurrencies are not recognized as a payment instrument as well as a regular currency.

The value of sales agreements for commercial premises in Serbia increased by 45% in 2021

According to the bureau, the value of sales contracts signed for commercial premises in Serbia increased by 45% to €167.1 million last year, the country's authorities said.

In terms of number of transactions, transactions for the sale of commercial premises, a category comprising stores, offices and warehouses, increased by 42% in 2021, the office said in a statement on Tuesday.

The number of transactions for the sale of land earmarked for construction projects advanced 40% in 2021, while the value of contracts rose 66% to €463.5 million, according to the data.

Serbia's GDP rises 7.4% in 2021, according to preliminary data

Serbia's gross domestic product (GDP) grew 7.4% in 2021, the country's statistical office said on Monday, citing preliminary data.

In the fourth quarter alone, GDP grew by a real 7.0% year-on-year, after rising by 7.6% in the previous quarter, the statistical office said in a statement.

On a quarterly comparison basis, Serbia's economy rose by 1.7% in the final quarter of 2021, after growing at the same pace in the previous trimester, the statistical office added.

The fourth quarter of 2021 saw a significant rise of gross value added in real terms in transportation and storage and accommodation and food service activities, of 14.7%, and construction, of 10.9%. Professional, scientific and technical activities and administrative and support service activities category observed the same 10.9% growth.

Agriculture, forestry and fishing shrank by 5.5% in between October and December.

The final full-year GDP growth figure will be released in September, the office said.

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Serbia is a jewel of the Balkans. This small country has had a sound economic performance in the last decade and seems destined to become an European Union member.

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Serbia is the crossroad of the West and the East, a country with limitless business opportunities. If you wish to invest in Serbia, don’t hesitate and contact us now.

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