Serbia’s outlook revised to stable from negative

Serbia’s outlook revised to stable from negative

Amid signs of modest growth, fueled by investments, the government continues to tackle structural issues in the economy and public sector, the statement said.

The country's long-term economic growth potential, particularly if supported by continued structural reform, supports the ratings.

The agency "praised a path of fiscal consolidation that is well anchored by a three-year €1.2 billion standby agreement from the International Monetary Fund (IMF), which the authorities want to treat as a precautionary measure."

"In the medium term, these steps will put public finances on a more sustainable path and reduce the state's role in the economy," the website said, adding that the agency "could raise the ratings if the government perseveres with fiscal consolidation and implements structure reforms, builds a track record of effective economic and fiscal management, and continues Serbia's economic and institutional integration with the EU."