Serbia’s central government debt rose by 1.6% m/m to EUR23.7bn at end-March, according to the latest data by the finance ministry. The debt accounted for 59.0% of GDP, down from 61.6% of GDP at end-2017. The monthly increase reflected higher domestic and external debt stock, whereas contingent liabilities declined by 1.9% m/m. In y/y terms, debt fell by 3.4%. The share of EUR-denominated debt in Serbia’s central government debt stood at 40.8% at end-March. The share of USD-denominated debt was 27.8% and the share of RSD debt increased to 25.0%. The general government public debt stood at EUR24.1bn at end-March and accounted for 59.9% of GDP, down from 62.4% at end-2017.
The reduction of the debt reflects good fiscal results and favorable cross-currency changes. The budget deficit is projected to stabilize at 0.5% of GDP till 2020, enabling reduction of the general government public debt to 56.3% of GDP by the end of the period.