Just three days apart, Serbia saw the resignation of Prime Minister Vučević on January 28, 2025, followed by the Fitch Ratings agency’s report on Serbia’s credit rating on January 31, 2025.
Fitch maintained Serbia’s credit rating at BB+ with a positive outlook, signaling a stable financial situation but acknowledging risks related to political uncertainty. Despite expectations for an upgrade, the agency cited the internal political instability, specifically Vučević’s resignation after protests related to a 2024 railway accident. Fitch believes the political situation’s impact on policies will be minimal but could increase pressure on spending and delay reforms.
The report praised Serbia’s fiscal management, strong growth prospects, and improved international reserves. It also highlighted a large investment cycle and noted the role of the IMF-backed fiscal policy in reducing debt. Fitch also recognized the significant increase in infrastructure investments and projects, especially linked to the 2027 Expo in Belgrade, which is projected to cost €18 billion, including 320 public investment projects.
However, Fitch raised concerns about the execution of these projects, warning of challenges in managing such large-scale investments. Despite ongoing efforts and optimism surrounding Expo 2027, the agency noted the unclear timeline for project implementation.
