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S&P downgrades outlook on Serbia to ʼstableʼ

S&P Global Ratings has changed Serbia’s sovereign credit rating outlook to stable from positive and affirmed the debt grade at "BB+". 

Photo by Eviart / Shutterstock.com

S&P said on May 1 that it projects the restrictions imposed on peoples’ movements on account of the coronavirus will cause the Serbian economy to contract by 3.5% in 2020.

The ratings agency says it expects the government’s fiscal and debt metrics to deteriorate this year, adding that Serbia’s recovery will be tied to fortunes of its key trading partners by virtue of its economy being more open to global financial crises.

Moody’s credit rating for Serbia is at "Ba3" with a positive outlook,  while Fitch has the country at "BB+" with a stable outlook. 

Meanwhile, Serbiaʼs industrial production fell 0.1% year-on-year in March, after rising by 7.6% in February, the Serbian Statistical Office (SORS) said in a statement on April 30.

According to the Belgrade-based statistics agency, production fell in almost all categories: durable consumer goods (-14.7%); capital goods (-12.5%); intermediate goods (-6.8%); and non-durable consumer goods (-1.5%). Energy production, on the other hand, jumped 14.5%.

On a seasonally-adjusted monthly comparison basis, the industrial output went down 2.8% in March after increasing 4.4% a month earlier, SORS said.