Economy of Serbia
Encyclopedia
Serbia
's economy is based mostly on various services (63.8% of GDP), industry
(23.5% of GDP), and agriculture
(12.7% of GDP). In the late 1980s, at the beginning of the process of economic transition from a planned economy
to a market economy
, Serbia's economy had a favorable position, but it was gravely impacted by economic sanctions
from 1992–1995, as well as excessive damage to infrastructure and industry during the 1999 NATO bombing.
After the ousting of former Yugoslav President Slobodan Milošević
in October 2000, the country went through an economic liberalization process, and experienced fast economic growth. GDP per capita (nominal) went from $1,160 in 2000 to $6,267 in 2011. Furthermore, it has been preparing for membership in the European Union
, its most important trading partner. Estimated GDP (nominal) of Serbia for 2011 is $46.4 billion, which is $6,267 per capita. Estimated GDP (PPP) of Serbia for 2011 is Intl. $79.013 billion, which is Intl. $10,664 per capita. At present, main economic problems are high unemployment rate (19.2%, October 2010) and a large trade deficit ($7.2 billion, 2009).
In recent years, Serbia has seen an increasingly swift foreign direct investment trend, including metal processing industry US Steel, building material industry Lafarge
, food and beverages industry Carlsberg
, Coca Cola, Nestle
, textile industry Golden Lady, Pompea, leather industry Progetti Company, Falc East, ICT Industry Microsoft
and Siemens
. By countries, most cash investments in 2005-2009 period came from Austria
($2.68bn), Greece
($1.62bn), Norway
($1.55bn), Germany
($1.30bn), and Italy
($0.95bn), while major investor countries also include Slovenia
, Netherlands
, Russia
and France
. The actual amount of investments from countries such as the United States
and Israel
are significantly higher than the official figure due to their companies investing primarily through European affiliates.
Serbia's primary industries include processing of base metals, furniture, food processing, machinery, chemicals, sugar, tires, clothes and pharmaceuticals. The main export products of Serbia in 2009. ware: iron and steel ($0.64bn), clothes ($0.53bn), cereals ($0.47bn), vegetables ($0.45bn), non-ferrous metals ($0.44bn). The main Serbian agriculture products are wheat, maize, sugar beets, sunflower, raspberries, beef, pork and milk. The average growth of Serbian industry total from 2000 to 2008 were 3.07% per year.
, public spending and public debt in the country.
Serbia's public debt relative to GDP from 2000 to 2008 decreased by 144.6 percentage points, and then started increasing again as the government was fighting effects of world-wide 2008 financial crisis.
The National Bank of Serbia
is the central bank of Serbia and as such its main responsibilities are the protection of price stability, the dinar exchange rate
policy, management of the foreign currency reserves and maintenance of efficient payment and financial systems.
Serbian foreign exchange reserves
were highly augmented from 2000 to 2007, when they amounted 16.07 bn USD. After that they started to decrease, and in 2008 they amounted 12.85 bn USD.
and other fees. For a limited number of products (baby beef, sugar, and wine), annual import quotas remain in effect. In 2009, the EU countries was the largest export partners (54.2%) and the largest import partners (52.9%) of Serbia.
Serbia signed the CEFTA enabling exports of all products originating from Serbia without customs and other fees in the region: Albania
, Bosnia and Herzegovina
, Croatia
, Macedonia
, Moldova
, Montenegro
and UNMIK-Kosovo
. In 2009, the CEFTA countries were the second largest export destinations (33%) and third largest import destinations (7.8%) of Serbia.
Serbia signed a FTA with Russia. For a limited number of products, annual import quotas remain in effect. The list of products, excluded from the Free Trade Agreement with Russia, is revised annually. In 2009. the CIS
countries (Russia is a participating country of CIS) was the third largest export partners (7.3%) and the second largest import partners (18.5%) of Serbia.
Serbia signed a FTA with EFTA
members, Norway, Switzerland, Iceland and Liechtenstein (active as of April 2010) and with Turkey that will take effect in May 2010. Trade with the U.S. is pursued under the Generalized System of Preferences (GSP). U.S. trade benefits provide for a preferential duty-free entry for app. 4,650 products.
Serbia is open to foreign direct investment
, and attracting FDI is set as a priority for the government of Serbia, which provides both financial and tax incentives to companies willing to invest. Serbia has a long history of international commerce, even under communism, and it once attracted a sizeable foreign company presence, mainly due to its access to Comecon
, and Non-Aligned Movement
markets.
Today, leading investor nations in Serbia include: Austria ($2.68bn), Greece ($1.62bn), Norway ($1.55bn), Germany ($1.30bn) and Italy ($0.95bn). In a recent poll for investors, conducted by the German Chamber of Commerce, Serbia came on top as an investment destination in South-Eastern Europe, with 97% of companies being pleased with business conditions. During the first 3 quarters of 2011 foreign direct investment topped USD$ 1.2 billion up about USD$ 560 million from the same period in 2010.
Blue-chip corporations making investments in Serbia include: US Steel, Philip Morris
, Microsoft
, Fiat
, Coca-Cola
, Lafarge
, Siemens
, Carlsberg and others.
In the energy sector, Russian energy giants, Lukoil
and Gazprom
have made large investments. The banking sector has attracted investments from Banca Intesa
(Italy), Crédit Agricole
and Société Générale
(France), HVB Bank (Germany), Erste Bank, Raiffeisen Zentralbank and Hypo Group Alpe Adria (Austria), Eurobank EFG and Piraeus Bank
(Greece), and others. United States based Citibank, opened a representative office in Belgrade
in December 2006. In the trade sector, biggest foreign investors are France's Intermarché
, German Metro Cash and Carry
, Greek Veropoulos
, and Slovenian Mercator
.
Although most investments in previous years came primarily from the EU, greater interest is being shown from countries like India and Russia.
On September 25, 2007, the Government of Serbia and Indian firm Embassy Group signed a memorandum of understanding on information technology park construction. Embassy Group plans to build their first technological park in Europe at an area of 280ha in the town of Indjija near Belgrade
. The five year plan predicts building a business area of 250,000 square meters and employing around 25,000 people. This is planned as the largest Greenfield investment in Serbia, accounting for a minimum of $600 million. On December 24, 2008, presidents of Serbia and Russia, Boris Tadic
and Dmitry Medvedev
have signed oil and natural gas deal under which Gazprom
's oil arm Gazprom Neft gets a 51% stake in state-owned Petroleum Industry of Serbia for 400 million euros in cash and 550 million euros in investments. As a part of the deal, a 400 km (248.5 mi) leg of the South Stream
gas pipeline will be built through Serbia, an investment valued at another 2 billion euros.
The official currency
in Serbia is the Serbian dinar
- RSD (1 dinar is lowest unit), RSD = 0.0095 Euro
= 0.0121 USD (08/31/2010 Interbank exchange rate), except Kosovo and Metohija, which uses the Euro
.
Source: Ministry of Finance of Serbia
Average salary (October 2011):
Source: Statistical Office of Serbia, RSD to US$ and EUR calculation is based on 26/08/2011 Interbank exchange rate.
Employment by sector (September 2011):
Source: Statistical Office of Serbia
External debt (September 2011):
Source: National Bank of Serbia
Serbia
Serbia , officially the Republic of Serbia , is a landlocked country located at the crossroads of Central and Southeast Europe, covering the southern part of the Carpathian basin and the central part of the Balkans...
's economy is based mostly on various services (63.8% of GDP), industry
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...
(23.5% of GDP), and agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
(12.7% of GDP). In the late 1980s, at the beginning of the process of economic transition from a planned economy
Planned economy
A planned economy is an economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a government agency...
to a market economy
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...
, Serbia's economy had a favorable position, but it was gravely impacted by economic sanctions
Economic sanctions
Economic sanctions are domestic penalties applied by one country on another for a variety of reasons. Economic sanctions include, but are not limited to, tariffs, trade barriers, import duties, and import or export quotas...
from 1992–1995, as well as excessive damage to infrastructure and industry during the 1999 NATO bombing.
After the ousting of former Yugoslav President Slobodan Milošević
Slobodan Milošević
Slobodan Milošević was President of Serbia and Yugoslavia. He served as the President of Socialist Republic of Serbia and Republic of Serbia from 1989 until 1997 in three terms and as President of the Federal Republic of Yugoslavia from 1997 to 2000...
in October 2000, the country went through an economic liberalization process, and experienced fast economic growth. GDP per capita (nominal) went from $1,160 in 2000 to $6,267 in 2011. Furthermore, it has been preparing for membership in the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
, its most important trading partner. Estimated GDP (nominal) of Serbia for 2011 is $46.4 billion, which is $6,267 per capita. Estimated GDP (PPP) of Serbia for 2011 is Intl. $79.013 billion, which is Intl. $10,664 per capita. At present, main economic problems are high unemployment rate (19.2%, October 2010) and a large trade deficit ($7.2 billion, 2009).
In recent years, Serbia has seen an increasingly swift foreign direct investment trend, including metal processing industry US Steel, building material industry Lafarge
Lafarge
Lafarge is a French industrial company specialising in four major products: cement, construction aggregates, concrete and gypsum wallboard. In 2010 the company was the world's second-largest cement manufacturer by mass shipped behind Holcim.-History:...
, food and beverages industry Carlsberg
Carlsberg
The Carlsberg Group is a Danish brewing company founded in 1847 by J. C. Jacobsen after the name of his son Carl. The headquarters are in Copenhagen, Denmark...
, Coca Cola, Nestle
Nestlé
Nestlé S.A. is the world's largest food and nutrition company. Founded and headquartered in Vevey, Switzerland, Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri...
, textile industry Golden Lady, Pompea, leather industry Progetti Company, Falc East, ICT Industry Microsoft
Microsoft
Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...
and Siemens
Siemens
Siemens may refer toSiemens, a German family name carried by generations of telecommunications industrialists, including:* Werner von Siemens , inventor, founder of Siemens AG...
. By countries, most cash investments in 2005-2009 period came from Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
($2.68bn), Greece
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
($1.62bn), Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
($1.55bn), Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
($1.30bn), and Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
($0.95bn), while major investor countries also include Slovenia
Slovenia
Slovenia , officially the Republic of Slovenia , is a country in Central and Southeastern Europe touching the Alps and bordering the Mediterranean. Slovenia borders Italy to the west, Croatia to the south and east, Hungary to the northeast, and Austria to the north, and also has a small portion of...
, Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
, Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
and France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
. The actual amount of investments from countries such as the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
are significantly higher than the official figure due to their companies investing primarily through European affiliates.
Macroeconomic trends
The average growth of Serbia's GDP in the last ten years were 4.45% per year. GDP structure by sector in 2009 was: services 63.8%, industry 23.5%, agriculture 12.7%. GDP structure by components in 2008 was: private consumption 74.3%, public consumption 20.6%, investments 28.6%, exports 30,7%, imports 54,2%.| GDP | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 |
| GDP (USD Billions) | 8.7 | 11.4 | 15.1 | 19.5 | 23.7 | 25.2 | 29.3 | 39.0 | 47.7 | 40.1 | 38.0 | 46.4 | 49.0 | 52.5 | 57.0 | 62.1 | 69.0 |
| GDP growth rate | 5.3% | 5.6% | 3.9% | 2.4% | 9.3% | 5.4% | 5.2% | 6.9% | 5.5% | -3.0% | 1.8% | 2.0% | 3.0% | 4.5% | 5.0% | 5.5% | 5.0% |
| GDP Per Capita (USD) | 1152 | 1524 | 2012 | 2613 | 3169 | 3391 | 3958 | 5277 | 6467 | 5438 | 5139 | 6267 | 6600 | 7058 | 7656 | 8313 | 9215 |
| GDP (PPP) per capita (Geary-Khamis $) | 5655 | 6100 | 6468 | 6786 | 7598 | 8315 | 8928 | 9722 | 10900 | 10708 | 10897 | 11869 | 12450 | 13122 | 13879 | 14845 | 15500 |
| Source: IMF World economic outlook, 2011 | |||||||||||||||||
Serbia's primary industries include processing of base metals, furniture, food processing, machinery, chemicals, sugar, tires, clothes and pharmaceuticals. The main export products of Serbia in 2009. ware: iron and steel ($0.64bn), clothes ($0.53bn), cereals ($0.47bn), vegetables ($0.45bn), non-ferrous metals ($0.44bn). The main Serbian agriculture products are wheat, maize, sugar beets, sunflower, raspberries, beef, pork and milk. The average growth of Serbian industry total from 2000 to 2008 were 3.07% per year.
| Industrial production growth rate | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 |
| Mining and quarrying | 8.1 | -12.8 | 1.6 | 0.8 | -0.7 | 2.1 | 3.5 | -0.6 | 3.6 | -3.8 | 5.8 |
| Manufacturing | 14.5 | 0.7 | 2.7 | -4.6 | 9.6 | -0.7 | 5.4 | 4.3 | 0.8 | -16.1 | 4 |
| Electricity, gas and water supply | 2.1 | 1,2 | -1.7 | 2,3 | 0.1 | 6.6 | 2.2 | 2.8 | 1.8 | 0.8 | -4.4 |
| Industry total | 11.4 | 0.1 | 1.8 | -3.0 | 7.1 | 0.8 | 4.7 | 3.7 | 1.1 | -12.6 | 2.5 |
| Source 1: Development Bureau of Serbia | |||||||||||
| Source 2: Statistical Office of Serbia | |||||||||||
Public finances
The Serbian Ministry of Finance performs tasks related to the state budget, public revenueRevenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
, public spending and public debt in the country.
Serbia's public debt relative to GDP from 2000 to 2008 decreased by 144.6 percentage points, and then started increasing again as the government was fighting effects of world-wide 2008 financial crisis.
| Public debt (year-end) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Year | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 |
| Debt (Billions EUR) | 14.17 | 13.43 | 11.53 | 11.02 | 9.68 | 10.28 | 9.35 | 8,88 | 8.78 | 9.85 |
| Debt (Percent of GDP) | 169.9% | 102.2% | 69.5% | 64.3% | 53.3% | 50.2% | 36.2% | 29.4% | 25.3% | 31.3% |
| Source: Ministry of Finance of Serbia | ||||||||||
The National Bank of Serbia
National Bank of Serbia
National Bank of Serbia is the central bank of Serbia; its main responsibilities are the protection of price stability and maintenance of financial stability....
is the central bank of Serbia and as such its main responsibilities are the protection of price stability, the dinar exchange rate
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...
policy, management of the foreign currency reserves and maintenance of efficient payment and financial systems.
Serbian foreign exchange reserves
Foreign exchange reserves
Foreign-exchange reserves in a strict sense are 'only' the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, Special Drawing Rights and International Monetary Fund reserve positions...
were highly augmented from 2000 to 2007, when they amounted 16.07 bn USD. After that they started to decrease, and in 2008 they amounted 12.85 bn USD.
| Foreign exchange reserves (year-end) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Year | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | |
| National bank (bn USD) | 0.52 | 1,17 | 2,28 | 3.55 | 4.24 | 5.84 | 11.89 | 14.22 | 11.48 | |
| Domestic banks (bn USD) | 0.37 | 0.64 | 0.78 | 0.89 | 0.91 | 0.70 | 0.75 | 1.85 | 1.37 | |
| Total (bn USD) | 0.89 | 1.81 | 3.06 | 4.44 | 5.15 | 6.54 | 12.64 | 16.07 | 12.85 | |
| Source: National Bank of Serbia | ||||||||||
External trade
Serbia signed Free Trade Agreement (FTA) with the EU enabling exports of all products originating from Serbia without customsCustoms
Customs is an authority or agency in a country responsible for collecting and safeguarding customs duties and for controlling the flow of goods including animals, transports, personal effects and hazardous items in and out of a country...
and other fees. For a limited number of products (baby beef, sugar, and wine), annual import quotas remain in effect. In 2009, the EU countries was the largest export partners (54.2%) and the largest import partners (52.9%) of Serbia.
Serbia signed the CEFTA enabling exports of all products originating from Serbia without customs and other fees in the region: Albania
Albania
Albania , officially known as the Republic of Albania , is a country in Southeastern Europe, in the Balkans region. It is bordered by Montenegro to the northwest, Kosovo to the northeast, the Republic of Macedonia to the east and Greece to the south and southeast. It has a coast on the Adriatic Sea...
, Bosnia and Herzegovina
Bosnia and Herzegovina
Bosnia and Herzegovina , sometimes called Bosnia-Herzegovina or simply Bosnia, is a country in Southern Europe, on the Balkan Peninsula. Bordered by Croatia to the north, west and south, Serbia to the east, and Montenegro to the southeast, Bosnia and Herzegovina is almost landlocked, except for the...
, Croatia
Croatia
Croatia , officially the Republic of Croatia , is a unitary democratic parliamentary republic in Europe at the crossroads of the Mitteleuropa, the Balkans, and the Mediterranean. Its capital and largest city is Zagreb. The country is divided into 20 counties and the city of Zagreb. Croatia covers ...
, Macedonia
Republic of Macedonia
Macedonia , officially the Republic of Macedonia , is a country located in the central Balkan peninsula in Southeast Europe. It is one of the successor states of the former Yugoslavia, from which it declared independence in 1991...
, Moldova
Moldova
Moldova , officially the Republic of Moldova is a landlocked state in Eastern Europe, located between Romania to the West and Ukraine to the North, East and South. It declared itself an independent state with the same boundaries as the preceding Moldavian Soviet Socialist Republic in 1991, as part...
, Montenegro
Montenegro
Montenegro Montenegrin: Crna Gora Црна Гора , meaning "Black Mountain") is a country located in Southeastern Europe. It has a coast on the Adriatic Sea to the south-west and is bordered by Croatia to the west, Bosnia and Herzegovina to the northwest, Serbia to the northeast and Albania to the...
and UNMIK-Kosovo
Kosovo
Kosovo is a region in southeastern Europe. Part of the Ottoman Empire for more than five centuries, later the Autonomous Province of Kosovo and Metohija within Serbia...
. In 2009, the CEFTA countries were the second largest export destinations (33%) and third largest import destinations (7.8%) of Serbia.
Serbia signed a FTA with Russia. For a limited number of products, annual import quotas remain in effect. The list of products, excluded from the Free Trade Agreement with Russia, is revised annually. In 2009. the CIS
CIS
CIS usually refers to the Commonwealth of Independent States, a modern political entity consisting of eleven former Soviet Union republics.The acronym CIS may also refer to:-Organizations:...
countries (Russia is a participating country of CIS) was the third largest export partners (7.3%) and the second largest import partners (18.5%) of Serbia.
Serbia signed a FTA with EFTA
EFTA
EFTA may refer to:* European Family Therapy Association, an NGO.* European Fair Trade Association, an association of eleven Fair Trade importers in nine European countries....
members, Norway, Switzerland, Iceland and Liechtenstein (active as of April 2010) and with Turkey that will take effect in May 2010. Trade with the U.S. is pursued under the Generalized System of Preferences (GSP). U.S. trade benefits provide for a preferential duty-free entry for app. 4,650 products.
| External trade | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 |
| Exports (mil. USD): | 1,558 | 1,721 | 2,075 | 2,477 | 3,523 | 4,553 | 6,428 | 8,825 | 10,973 | 8,344 | 9,794 |
| Imports (mil. USD): | 3,330 | 4,261 | 5,614 | 7,333 | 10,753 | 10,575 | 13,172 | 18,554 | 22,875 | 16,056 | 16,734 |
| Trade Balance (mil. USD): | -1,772 | -2,540 | -3,539 | -4,856 | -7,230 | -6,022 | -6,744 | -9,729 | -11,902 | -7,712 | -6,939 |
| Exports/Imports (%): | 46.8 | 40.4 | 37.0 | 33.8 | 32.8 | 41.1 | 48.8 | 47.6 | 48.0 | 52.0 | 58,5 |
| Source: Statistical Office of Serbia 2000-2009 data, 2010 data Top 5 export partners of Serbia in 2010: ($1.118bn) ($1.089bn) ($1.008bn) ($0.803bn) ($0.650bn) Top 5 import partners of Serbia in 2010: ($2.157bn) ($1.767bn) ($1.135bn) ($1.089bn) ($0.645bn) Top 5 export goods of Serbia in 2010:
Top 5 import goods of Serbia in 2010:
|
|||||||||||
Foreign direct investments
Leading investor nations in Serbia: ($2.68bn) ($1.62bn) ($1.55bn) ($1.30bn) ($0.95bn) |
Serbia is open to foreign direct investment
Foreign direct investment
Foreign direct investment or foreign investment refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor.. It is the sum of equity capital,other long-term capital, and short-term capital as shown in...
, and attracting FDI is set as a priority for the government of Serbia, which provides both financial and tax incentives to companies willing to invest. Serbia has a long history of international commerce, even under communism, and it once attracted a sizeable foreign company presence, mainly due to its access to Comecon
Comecon
The Council for Mutual Economic Assistance , 1949–1991, was an economic organisation under hegemony of Soviet Union comprising the countries of the Eastern Bloc along with a number of communist states elsewhere in the world...
, and Non-Aligned Movement
Non-Aligned Movement
The Non-Aligned Movement is a group of states considering themselves not aligned formally with or against any major power bloc. As of 2011, the movement had 120 members and 17 observer countries...
markets.
Today, leading investor nations in Serbia include: Austria ($2.68bn), Greece ($1.62bn), Norway ($1.55bn), Germany ($1.30bn) and Italy ($0.95bn). In a recent poll for investors, conducted by the German Chamber of Commerce, Serbia came on top as an investment destination in South-Eastern Europe, with 97% of companies being pleased with business conditions. During the first 3 quarters of 2011 foreign direct investment topped USD$ 1.2 billion up about USD$ 560 million from the same period in 2010.
| Foreign direct investments | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 |
| Cash investments (USD Billions) | 0.05 | 0.17 | 0.50 | 1.38 | 0.98 | 1.61 | 4.47 | 3.56 | 3.36 | 2.40 | n/a |
| Total investments (USD Billions) | 0.05 | 0.16 | 0.55 | 1.41 | 1.03 | 2.09 | 5.12 | 3.98 | 2.99 | 1.92 | n/a |
| Total per capita (USD) | 5 | 15 | 51 | 133 | 98 | 199 | 499 | 381 | n/a | n/a | n/a |
| Cash investments source: Serbia Investment and Export Promotion Agency, Total investments source: UN Conference on trade and development Inward FDI by Industries (2005–2009):
|
|||||||||||
Blue-chip corporations making investments in Serbia include: US Steel, Philip Morris
Philip Morris International
Philip Morris International is an international tobacco company, with products sold in over 160 countries. In 2007, it held a 15.6% share of the international cigarette market outside of the USA and reported revenues net of excise taxes of $22.8 billion and operating income of $8.9 billion.Until...
, Microsoft
Microsoft
Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...
, Fiat
Fiat
FIAT, an acronym for Fabbrica Italiana Automobili Torino , is an Italian automobile manufacturer, engine manufacturer, financial, and industrial group based in Turin in the Italian region of Piedmont. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli...
, Coca-Cola
Coca-Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke...
, Lafarge
Lafarge
Lafarge is a French industrial company specialising in four major products: cement, construction aggregates, concrete and gypsum wallboard. In 2010 the company was the world's second-largest cement manufacturer by mass shipped behind Holcim.-History:...
, Siemens
Siemens
Siemens may refer toSiemens, a German family name carried by generations of telecommunications industrialists, including:* Werner von Siemens , inventor, founder of Siemens AG...
, Carlsberg and others.
In the energy sector, Russian energy giants, Lukoil
LUKoil
Lukoil/LUKoil ; ) is Russia's second largest oil company and its second largest producer of oil. In 2009, the company produced 97.615 million tons of oil; ....
and Gazprom
Gazprom
Open Joint Stock Company Gazprom is the largest extractor of natural gas in the world and the largest Russian company. Its headquarters are in Cheryomushki District, South-Western Administrative Okrug, Moscow...
have made large investments. The banking sector has attracted investments from Banca Intesa
Banca Intesa
Banca Intesa S.p.A. was formed in 1998 from the merger of Cassa di Risparmio delle Provincie Lombarde and Banco Ambroveneto...
(Italy), Crédit Agricole
Crédit Agricole
Crédit Agricole S.A. is the largest retail banking group in France, second largest in Europe and the eighth largest in the world by Tier 1 capital according to The Banker magazine. It is also part of the CAC 40 stock market index....
and Société Générale
Société Générale
Société Générale S.A. is a large European Bank and a major Financial Services company that has a substantial global presence. Its registered office is on Boulevard Haussmann in the 9th arrondissement of Paris, while its head office is in the Tours Société Générale in the business district of La...
(France), HVB Bank (Germany), Erste Bank, Raiffeisen Zentralbank and Hypo Group Alpe Adria (Austria), Eurobank EFG and Piraeus Bank
Piraeus Bank
Piraeus Bank Group is a Greek bank founded in 1916 that went through a period of state ownership and management before it was privatised in December 1991. Since then, it has continuously grown in size and activities...
(Greece), and others. United States based Citibank, opened a representative office in Belgrade
Belgrade
Belgrade is the capital and largest city of Serbia. It is located at the confluence of the Sava and Danube rivers, where the Pannonian Plain meets the Balkans. According to official results of Census 2011, the city has a population of 1,639,121. It is one of the 15 largest cities in Europe...
in December 2006. In the trade sector, biggest foreign investors are France's Intermarché
Intermarché
Intermarché is the brand of a general commercial French supermarket, part of the large retail group 'Les Mousquetaires' founded in 1969 under the name EX Offices, by Jean-Pierre Le Roch...
, German Metro Cash and Carry
Metro Cash and Carry
-Romania:METRO Cash and Carry was one of the first international food and non-food retail chains to enter the Romanian market, opening its first store in 1996 in Bucharest, near Henri Coandă International Airport....
, Greek Veropoulos
Veropoulos
Veropoulos is a large retail group based in Greece. It holds the SPAR retail franchise for Greece. In Crete, Veropoulos operates stores under the name of Xalkiadakis. Outside Greece, Veropoulos operates supermarkets in the Republic of Macedonia as Vero, and in Serbia as SuperVero. The company was...
, and Slovenian Mercator
Mercator (retail)
Mercator is a Slovenian retail chain based in Ljubljana. The company was founded in 1949 under the name Živila Ljubljana, but four years later it was renamed and given its current name...
.
Although most investments in previous years came primarily from the EU, greater interest is being shown from countries like India and Russia.
On September 25, 2007, the Government of Serbia and Indian firm Embassy Group signed a memorandum of understanding on information technology park construction. Embassy Group plans to build their first technological park in Europe at an area of 280ha in the town of Indjija near Belgrade
Belgrade
Belgrade is the capital and largest city of Serbia. It is located at the confluence of the Sava and Danube rivers, where the Pannonian Plain meets the Balkans. According to official results of Census 2011, the city has a population of 1,639,121. It is one of the 15 largest cities in Europe...
. The five year plan predicts building a business area of 250,000 square meters and employing around 25,000 people. This is planned as the largest Greenfield investment in Serbia, accounting for a minimum of $600 million. On December 24, 2008, presidents of Serbia and Russia, Boris Tadic
Boris Tadic
Boris Tadić is the President of Serbia and leader of the Democratic Party. He was elected to a five-year term on 27 June 2004, and was sworn into office on 11 July. He was re-elected for a de facto second five-year term on 3 February 2008 and was sworn in on 15 February...
and Dmitry Medvedev
Dmitry Medvedev
Dmitry Anatolyevich Medvedev is the third President of the Russian Federation.Born to a family of academics, Medvedev graduated from the Law Department of Leningrad State University in 1987. He defended his dissertation in 1990 and worked as a docent at his alma mater, now renamed to Saint...
have signed oil and natural gas deal under which Gazprom
Gazprom
Open Joint Stock Company Gazprom is the largest extractor of natural gas in the world and the largest Russian company. Its headquarters are in Cheryomushki District, South-Western Administrative Okrug, Moscow...
's oil arm Gazprom Neft gets a 51% stake in state-owned Petroleum Industry of Serbia for 400 million euros in cash and 550 million euros in investments. As a part of the deal, a 400 km (248.5 mi) leg of the South Stream
South Stream
South Stream is a proposed gas pipeline to transport Russian natural gas to the Black Sea to Bulgaria and further to Greece, Italy and Austria. The project is seen as rival to the planned Nabucco pipeline...
gas pipeline will be built through Serbia, an investment valued at another 2 billion euros.
Domestic currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
in Serbia is the Serbian dinar
Serbian dinar
The dinar is the currency of Serbia. An earlier currency also called dinar was used in Serbia between 1868 and 1918. The earliest use of the dinar date to 1214. Today's Serbian dinar is a continuation of the last Yugoslav dinar...
- RSD (1 dinar is lowest unit), RSD = 0.0095 Euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
= 0.0121 USD (08/31/2010 Interbank exchange rate), except Kosovo and Metohija, which uses the Euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
.
| Year | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 |
| USD exchange | 67.67 RSD | 58.98 RSD | 54.64 RSD | 57.94 RSD | 72.22 RSD | 59.98 RSD | 53.73 RSD | 62.90 RSD | 66.73 RSD | 82.30 RSD | 69.85 RSD |
| Source: Ministry of Finance of Serbia | |||||||||||
National statistics
Government budget (September 2011):- Revenues: 19896.5 Billion RSD
- Expenditures: 2007.9 Billion RSD
Source: Ministry of Finance of Serbia
Average salary (October 2011):
- Average monthly gross salary: RSD 64285, US$901, €650
- Average monthly net salary (tax, medicare and retirement subtracted): RSD 50995, US$687, €500
Source: Statistical Office of Serbia, RSD to US$ and EUR calculation is based on 26/08/2011 Interbank exchange rate.
Employment by sector (September 2011):
- Tertiary: 49.7%
- Secondary: 26.2%
- Primary: 24.1%
- Total labor force: 4.20 Million
- Unemployment rate: 14% (October 2011 estimation)
Source: Statistical Office of Serbia
External debt (September 2011):
- Public sector: $6.50 bn
- Private sector: $7.00 bn
- Total: $13.50bn
Source: National Bank of Serbia