Furthermore, it is worth mentioning that the National Bank of Serbia has announced that the Fitch rating agency has confirmed Serbia’s credit rating at the BB+ level, alongside the news of inflation decelerating to 12.5 per cent and a temporary halt in the increase of interest rates.
However, it is highly unlikely that the minimum wage will be increased this year, despite the trade unions’ request.
The Fitch rating agency has recently confirmed Serbia’s credit rating as BB+, which is just one step below the investment rating. The National Bank of Serbia (NBS) has announced that there are stable prospects for further increase. Fitch also highlighted a significant improvement in the country’s external position, with a lower deficit in the current account of the balance of payments, as well as faster economic growth and a decrease in inflation. Moreover, the banking sector remains resilient, the public debt has been reduced, and there have been improvements in the energy sector. Overall, the prospects for further growth in Serbia are stable.
Regarding the call for a higher minimum wage, the Ministry of Finance respectfully suggests that the request may not be substantiated, as inflation is projected to decrease by half and reach a mere eight per cent by the end of 2023. Furthermore, it is worth noting that the minimum wage has already been raised by 14.3 per cent this year. It is important to mention that the trade unions have firmly expressed their stance, stating that they would not accept a 2024 increase below the range of 20 to 25 per cent.
According to estimates, there are approximately 236,000 individuals currently earning minimum wage. In light of the rising cost of living, trade unions have kindly requested an additional increase during the latter part of this year.
