Serbia received its first-ever investment-grade credit rating on October 4 when Standard & Poor's (S&P) Global Ratings, one of the big three international credit ratings agencies, raised the country's long-standing BB+ rating to BBB- with a stable outlook. 

The rating decision positions Serbia as the first country in the Western Balkans, and the only EU candidate country, to achieve investment-grade status.

"This is a significant moment for Serbia," said President Aleksandar Vucic. "After almost a decade of hard work, Serbia has reached investment-grade status for the first time in history, signalling our stability and attractiveness as a destination for global investors."

The upgrade to investment grade is expected to lower borrowing costs, increase access to international capital markets, and bolster investor confidence. It marks a turning point for Serbia, which has long sought to attract institutional investors whose mandates often restrict them to countries with investment-grade ratings.

"There are investors who have wanted to invest in Serbia but were unable to because of rating restrictions. Now, we've opened the door for them," Vucic added.

Minister of Finance Sinisa Mali hailed the rating as a "well-deserved confirmation" of Serbia’s robust macroeconomic policies. “This shows that we are on a successful path of continuous economic growth and macroeconomic stability,” Mali said.

Prime Minister Milos Vucevic echoed these sentiments, crediting the government’s responsible fiscal management. "This is proof that Serbia is pursuing the right economic policies under President Vucic’s leadership," Vucevic stated.

S&P’s decision follows a decade of steady economic reforms that have transformed Serbia’s economic landscape. The agency's report highlighted Serbia’s accelerating growth, falling inflation, reduced current-account deficit, and record-high foreign exchange reserves as key factors in its decision. The country’s real GDP is projected to reach 3.8% in 2024, buoyed by strong domestic demand and major infrastructure projects, including preparations for Expo 2027.

"High foreign exchange reserves and diversified foreign direct investment have strengthened Serbia's ability to weather external shocks," the report noted, adding that these factors mitigate risks arising from global economic uncertainties.

In a broader context, Serbia’s economic prospects appear increasingly positive, with a fairly stable political outlook, institutional support for sound macroeconomic policies and a commitment to continuing structural reforms. National Bank of Serbia Governor Jorgovanka Tabakovic described the upgrade as a "historic step," emphasising that Serbia has now entered "the ranks of countries that are particularly important on the world investment map”.

Prior to the upgrade, Serbia held a BB+ rating from S&P, the same as Fitch, while Moody's has assigned the country a Ba2 rating, two notches below investment grade.