Serbia hopes to shed S&P junk status in Oct - finmin

"If we manage to do that, and we expect the next report in October this year, then it will be a great success after all our reforms and activities that we have already undertaken in the past 12 years to help our economy grow, be strong and stable," Mali said in a statement on Friday after holding talks with S&P officials during the 2024 Spring Meetings of the IMF and World Bank Group held on April 15-20 in Washington DC.

Mali is one of the deputy leaders of the ruling Serbian Progressive Party (SNS), which has been the dominant political force in the country since 2012.

Earlier in April, S&P upgraded its outlook on Serbia to positive from stable on improved fiscal and external profile, while affirming the country's 'BB+/B' ratings. It has also said it projects the country's economic growth to quicken to 3.3% in 2024, from 2.5% in 2023, and to accelerate to 3.8% on average over 2025-2027.

The ratings agency noted it could consider an upgrade in the next 12 months should Serbia's external position improve beyond expectations on the back of stronger exports or net foreign direct investment (FDI) inflows. Additionally, stronger fiscal performance that helps lower net government debt could also lead to an upgrade.

According to S&P's global ratings scale, Serbia's current BB+/B ratings are considered non-investment grade, also referred to as speculative, or junk. They are one notch away from S&P's investment grades including AAA, AA, A, BBB, BBB- (from best quality to good quality but somewhat vulnerable to changing economic conditions).