ABOUT SERBIA

It was estimated that the total economic activity in the Republic of Serbia in 2024, measured by the real movement of gross domestic product (GDP), recorded a growth of 3.9% compared to 2023.

Gross investments in fixed assets in 2024, measured by real growth rates, recorded a growth of 9.2% compared to the previous year.

In 2024, agricultural production experienced a decline in physical volume of 8.8%. In the same period, industrial production recorded a growth of 3.0%, and the manufacturing industry a growth of 4.4%.

The value of construction works in 2024 recorded a real growth of 8.6% compared to the previous year. Turnover in retail trade achieved real growth of 5.9%, while turnover in wholesale trade was nominally higher by 5.0%. Foreign trade goods exchange, in euros, in 2024, compared to 2023, shows an increase in exports by 1.7% and an increase in imports by 5.6%. Within the accommodation and catering services sector, in 2024, real growth in the hospitality industry was estimated at 8.3%, while the number of overnight stays by tourists increased by 1.4%. In 2024, compared to 2023, an increase in the physical volume of traffic of 9.3% and a decrease in the physical volume of telecommunications by 0.9% were registered.

According to the results of the Labor Force Survey, in the third quarter of 2024, the employment rate is 51.9%, while the unemployment rate is 8.1%.

Average earnings without taxes and contributions in 2024, compared to the previous year, are nominally higher by 14.2%, and in real terms by 9.2%.

Investing in Serbia can be profitable due to various factors, including a competitive and skilled workforce, a growing economy, and good government support.

Specific reasons why Serbia is attractive to investors:

Skilled and suitable workforce:

Serbia has a well-educated and trained workforce, especially in the IT field, where many programmers and engineers are internationally competitive.

Growing economy:

Serbia has demonstrated steady economic growth, which attracts foreign investors.

Convenient location:

Serbia has a good logistics infrastructure, which facilitates transportation and communication with other countries, according to comments on the Serbian Association of Regional Development Agencies.

Good government support:

Serbia offers good support to investors, including tax breaks and incentives,

Serbia can serve as a manufacturing hub for duty-free exports to a market of more than 1 billion people that includes the European Union, the Russian Federation, the United States, Kazakhstan, Turkey, Southeast Europe, members of the Free Trade Agreement, and Belarus.

Thanks to free trade agreements, Serbian producers have a privileged status and access to a market of 2.7 billion consumers.

In addition to the CEFTA agreement, Serbian businesses are allowed to export duty-free to the markets of the EU, EFTA, Russia and the Eurasian Union, Turkey and China, as well as the right to use the Generalized System of Preferences with the USA, Japan and Australia (application of 0% customs duty on a certain number of goods).

The duty-free regime covers most key industrial products, with a few exceptions and annual quotas for a limited number of goods.