public debt

Serbia Retains BBB- Rating as Higher Spending Narrows Fiscal Buffer

Serbia has retained its BBB- investment-grade rating with a stable outlook from S&P Global Ratings, while higher public spending is reducing part of the fiscal capacity available to absorb future economic and financing shocks. S&P lowered its forecast for Serbian economic growth to 3.2% in 2026 from 3.3%, while the government’s budget revision raised the planned general-government deficit to 3.5% of GDP from 3.0%. The unchanged rating means Serbia faces no immediate sovereign financing constraint from the review. However, the…