OPINION:
The recent decision by S&P Global Ratings to upgrade Serbia’s sovereign credit rating to investment grade marks a pivotal moment in our nation’s economic journey.
This achievement is not merely a financial milestone but a clear reflection of Serbia’s resilience, determination and commitment to progress. Two decades ago, Serbia faced the massive task of rebuilding our economy and financial credibility on the global stage. We recognized that to attract investment and foster sustainable growth, it was essential to create a stable, transparent and business-friendly environment.
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% of gross domestic product in 2015 to approximately 47% today, showing our strong commitment to sound economic practices and fiscal responsibility. Since 2012, Serbia’s GDP has more than doubled, growing from 35 billion euros to an impressive 82 billion euros this year.
Concurrently, we’ve tackled one of our most pressing socioeconomic challenges: Unemployment has declined from over 25% to less than 9%, creating new opportunities for our workforce. In recent years, foreign direct investment has consistently exceeded 4.5 billion euros annually, signaling international confidence in our economy and its potential.
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 billion euros annually.
This success is not just about numbers; it represents thousands of high-quality jobs and a new, dynamic sector of our economy. Our leadership role as the upcoming chair of the Global Partnership on Artificial Intelligence places us at the forefront of international discussions on responsible AI governance and practices, allowing us to shape the future of this transformative technology.
In the renewable energy arena, Serbia has been making significant strides, setting an ambitious target to increase our renewable energy share to 40% by 2040. Strategic international partnerships — particularly with the United States — support this goal. One milestone was the agreement signed earlier this year with Jose W. Fernandez. U.S. undersecretary of state for economic growth, energy and the environment.
This accord aims to accelerate Serbia’s clean energy transition through knowledge sharing, technology transfer and investment facilitation. 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 U.S. expertise and investment in Serbia’s renewable infrastructure and demonstrates our commitment to meeting EU energy standards.
The upgrade to investment grade by S&P Global Ratings will strengthen Serbia’s borrowing capacity while lowering our borrowing costs, enabling us to finance essential infrastructure projects to drive future growth. These include new highways to improve connectivity, rail expansions to enhance our logistics capabilities and health care improvements to better serve our citizens.
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.
As we celebrate this milestone, we recognize that Serbia’s work is far from over. The journey to sustainable and inclusive growth requires a continued commitment to policies that benefit all citizens. We remain dedicated to further reforms that will enhance our competitiveness, improve our business environment and address remaining economic tasks.
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 prioritize 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.
The upgrade to investment grade is a recognition of past efforts and a springboard for our future ambitions. With this solid foundation, Serbia is poised to enter a new era of prosperity, innovation and sustainable development, ready to play an increasingly significant role on the global stage.
• Marko Đuric is Serbia’s foreign minister.
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