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flag Serbia Serbia: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

In the recent years, Serbia has benefited from very high growth rates, particularly thanks to the transportation, construction and financial services sectors. The country is a huge potential market, mainly because its domestic demand is dynamic and also because it is increasing its openness to trade and foreign investment.

The financial crisis has affected the Serbian economy. The government was forced to reduce its public expenses in order to limit the budgetary deficit to 3% of GDP. This measure has allowed the country to obtain a loan  from IMF at the beginning of 2009 for an amount of EUR 3 billion. The European Investment Bank has also launched a supporting program for Serbia which aims at fighting the effects of the financial crisis and to bring the country closer to the European Union. An initial co-operation of EUR 250 million was signed in May 2009 to help financing investments for small and medium companies (SME) and priority projects through the channel of the National Bank of Serbia.

The trade balance has registered a marked deficit, imports being sustained by domestic demand while exports have remained low. The rate of unemployment, which is close to 20%, is one of the highest in Europe.

The Serbian economy has shown signs of a revival in 2010 with a GDP's growth of 1.5%. This growth should increase rapidly in 2011. In the mean time, the country has to face some challenges such as high inflation. The priority of the government remains to control and reduce inflation in 2011 and 2012 as well as the fight against unemployment which remains as one of the black spots of the country.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 40.1438.0146.4449.0152.52
GDP (Constant Prices, Annual % Change) -3.51.02.03.04.5
GDP per Capita (USD) 5,4385,1396,2676,6007,058
General Government Gross Debt (in % of GDP) 38.244.944.144.543.1
Inflation Rate (%) 8.16.211.3e4.33.7
Unemployment Rate (% of the Labor Force) 17.419.620.520.619.5
Current Account (billions USD) -2.86-2.75-3.57e-4.38-4.55
Current Account (in % of GDP) -7.1e-7.2e-7.7e-8.7-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

The agricultural sector represents 15% of the country's national revenue. Serbia has significant quantities of coal, lead, zinc, copper and gold, but the lack of investment which has affected the mining sector for several years prevents the country's economy from benefiting from this wealth.

The industry sector is very outdated and in need of strong foreign investment.  It contributes 20% to the country's GDP.

Services make up the main sector of activity, representing almost two thirds of Serbia's GDP.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 24.0 25.1 50.8
Value Added (in % of GDP) 12.9 27.7 59.5
Value Added (Annual % Change) - - -

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Serbian Dinar (RSD) - Average Annual Exchange Rate For 1 USD 67.1558.4555.7267.5877.73

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Serbia on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
58.0/100
Position:
Mostly unfree
World Rank:
96/179
Regional Rank:
37/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Serbia is not yet fully open to foreign trade. The perspective of an association agreement with the European Union and the steady growth of the direct foreign investment inflows should, however, lead to an increase in the volume of foreign trade. Serbia's main customers are Bosnia-Herzegovina, Italy and Germany to whom it exports manufactured goods and foodstuffs. Exports of services are relatively low. Russia, Italy and Germany are Serbia's main suppliers. Serbia buys manufactured goods and hydrocarbons from them.
In the context of the international economic crisis, the deficit in foreign trade has reached more than EUR 9 billion in 2008-2009, which means an increase of 25% in relation to 2007.

Serbian products are hard to sell because they are of low quality compared to other European products and the trade balance will be again in deficit in 2011. The main export products are iron, steel, fruits, vegetables, clothing and cereals.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 13,17219,16424,33116,05616,730
Exports of Goods (million USD) 6,4288,82510,9728,3459,795
Imports of Services (million USD) 2,1143,4564,2393,4063,407
Exports of Services (million USD) 2,0893,1404,0023,4783,519
Imports of Goods and Services (Annual % Change) 7.826.09.3-17.3-4.0
Exports of Goods and Services (Annual % Change) 4.917.28.9-12.4-0.4
Imports of Goods and Services (in % of GDP) 51.454.153.745.347.6
Exports of Goods and Services (in % of GDP) 29.930.230.428.330.9
Trade Balance (million USD) --9,649-12,518-7,129-6,344
Trade Balance (Including Service) (million USD) --10,003-12,786-7,098-6,338
Foreign Trade (in % of GDP) 81.384.384.173.778.5

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Italy 11.4%
Bosnia and Herzegovina 11.1%
Germany 10.3%
Montenegro 8.2%
Romania 6.6%
See More Countries 52.3%
Main Suppliers
(% of Imports)
2010
Russia 12.9%
Germany 10.6%
Italy 8.6%
China 7.2%
Hungary 4.8%
See More Countries 56.0%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Flat-rolled products of iron or non-alloy steel,...Flat-rolled products of iron or non-alloy steel, of a width >= 600 mm, hot-rolled, not clad, plated or coated 6.2%
Maize or cornMaize or corn 3.4%
Fruit and nuts, uncooked or cooked by steaming or...Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter 2.6%
New pneumatic tyres, of rubberNew pneumatic tyres, of rubber 2.4%
Electrical energyElectrical energy 2.4%
See More Products 82.9%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 6.5%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 5.7%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 2.3%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 1.8%
Coke and semi-coke of coal, of lignite or of peat,...Coke and semi-coke of coal, of lignite or of peat, whether or not agglomerated; retort carbon 1.7%
See More Products 82.1%

Source: Comtrade, Last Available Data

 
 

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Sources of General Economic Information

Ministries
Ministry of Finance
Statistical Office
Statistics Office of Serbia
Central Bank
National Bank of Serbia
Stock Exchange
Belgrade Stock Exchange
Search Engines
Google Serbia
Cruiser
Serbian Cafe
Yusearch
Economic Portals
Ekonomist
Portal for economic information about Serbia

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Political Outline

Executive Power
Executive power is held by the President of the Republic, the Prime Minister and the Council of Ministers. The President is elected for a 5 year term by direct universal suffrage, and can be elected twice. He has exceptional powers in case of a state of emergency and can dissolve the National Assembly. The government and its members, on the other hand, are accountable to the National Assembly.
Legislative Power
Legislative power is held by the National Assembly, which consists of 250 Members elected for a 4 year term by direct universal suffrage.
Main Political Parties
DS, Democratic Party (Boris TADIC)
DSS, Serbian Democratic Party (Vojislav KOSTUNICA)
G17 Plus (Mladjan DINKIC)
NS, New Serbia (Velimir ILIC)
SPO, Movement for Serbian Revival (Vuk DRASKOVIC)
SPS, Serbian Socialist Party (Ivica DACIC)
SRS, Serbian Radical Party (Tomislav NIKOLIC)
Current Political Leaders
President of the Republic: Boris TADIC (Democratic Party, DS), elected on 28 June 2004, re-elected in February 2008.
Prime Minister: Mirko CVETKOVIC (since 7 July 2008).
Next Election Dates
Presidential: 2013
Parliamentary: 2012
 

Indicator of Freedom of the Press

World Rank:
85/178
Evolution:
20 places down compared to 2009
 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
2/7
Civil Liberties:
2/7

Map of freedom 2010

 

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Last Updates: January 2012