Credit rating agency Moody’s has upgraded the Republic of Serbia long-term foreign and local currency Issuer Default Ratings from ‘B1’ to ‘Ba3’ and the Outlooks have been revised to stable, the Ministry of Finance of Serbia reported.

The main factors which contributed to the Republic of Serbia credit rating upgrade are successful implementation of fiscal consolidation measures, which halted the increase in its debt burden and recent structural reforms which have increased the resilience of Serbia’s economy, supporting potential growth.

The agency says that positive fiscal trends continued in 2016, with the general government deficit reaching an estimated 1.4% of GDP in 2016, far exceeding the 4% target in the original budget for 2016

The Serbian economy recovered strongly in 2016, growing by an estimated 2.8% of GDP, the highest rate of growth over the past 8 years, the press release says.

According to Moody’s, economic growth will rise to 3.0% this year and reach 3.3% in 2018.