Moody’s raised Serbia’s economic outlook to positive from stable and affirmed the country’s rating at Ba2. The agency expects Serbia’s real GDP growth to quicken to 3.8% in 2024 and 4.2% in 2025 from last year’s 2.5%, driven by domestic demand, supported by lower inflation, favorable labor market dynamics, and a pick-up in investment. However, net exports are expected to have a negative contribution to GDP growth.