Fitch changes Serbia’s outlook

Fitch has decided to keep Serbia's credit rating unchanged but has upgraded the outlook to positive. The upgrade is due to the strengthening of credit fundamentals, such as improving fiscal and growth prospects. Moving forward, growth prospects are robust and will be driven by a large pipeline of both public and private investments. An example of such investment is the "Leap into the Future - Serbia Expo 2027" plan, which contains EUR17.8 billion (23.4% of projected 2024 GDP) of spending centered on the 2027 Belgrade Expo. Overall, the upgraded outlook brings Serbia one step closer to the much-desired investment grade rating. However, the missing piece of the puzzle to obtain it is of a structural nature - governance indicators, as well as steps that would facilitate the EU accession prospects. The Fitchs decision follows the change of the outlook by S&P earlier this year. On Friday, after market closes, Fitch will publish rating decision for Czechia. We do not expect any change.