Djuric: Investment-grade rating marks pivotal moment in Serbia's economic journey

WASHINGTON - The investment-grade rating obtained from Standard and Poor's marks a pivotal moment in Serbia's economic journey and will strengthen the country's borrowing capacity while lowering its borrowing costs, enabling it to finance essential infrastructure projects, says Serbian FM Marko Djuric.

"These include new highways to improve connectivity, rail expansions to enhance our logistics capabilities and health care improvements to better serve our citizens," Djuric wrote in an opinion piece for the Washington Times.

"The improved rating is expected to attract a wider range of international investors, further diversifying our economy and creating new opportunities for Serbian businesses and workers alike," he noted.

"Looking forward, we will continue working closely with our international partners, including the European Union and the United States, to support our economic goals. We will prioritise further investments in education to ensure our workforce remains competitive in the global knowledge economy, health care to improve the well-being of our citizens and green technologies to position Serbia as a leader in the global transition to a sustainable future," Djuric added.

"Through diligent fiscal management, tough structural reforms and a forward-thinking approach to governance, we have laid a solid foundation for sustainable economic growth that is now bearing fruit.

The results of our efforts are clear in the numbers. Public debt has been significantly reduced from over 70 pct of gross domestic product in 2015 to approximately 47 pct today, showing our strong commitment to sound economic practices and fiscal responsibility.

Since 2012, Serbia’s GDP has more than doubled, growing from 35 bln euros to an impressive 82 bln euros this year.

Concurrently, we’ve tackled one of our most pressing socioeconomic challenges: Unemployment has declined from over 25 pct to less than 9 pct, creating new opportunities for our workforce. In recent years, foreign direct investment has consistently exceeded 4.5 bln euros annually, signaling international confidence in our economy and its potential," Djuric wrote.

He noted that a recent agreement on a strategic partnership with the US in the energy sector aimed to "accelerate Serbia’s clean energy transition through knowledge sharing, technology transfer and investment facilitation."

"In the renewable energy arena, Serbia has been making significant strides, setting an ambitious target to increase our renewable energy share to 40 pct by 2040," Djuric noted, adding that strategic international partnerships - particularly with the US - supported that goal.

"Serbia also announced a landmark solar project in partnership with Hyundai, UGT Renewables and other stakeholders that is expected to be the largest solar project in Europe, significantly expanding our country’s solar energy generation and battery storage capacity.

The project highlights the increasing role of US expertise and investment in Serbia’s renewable infrastructure and demonstrates our commitment to meeting EU energy standards," Djuric wrote.

"Serbia has also positioned itself as a leader in technology, most notably in artificial intelligence. Our capital, Belgrade, has transformed into a hub for startups and innovation, supported by a highly educated workforce with strong STEM capabilities.

The tech sector’s remarkable growth is evidenced by its doubling in size over the past five years, with information technology exports reaching 3.5 bln euros annually," he also noted.