The political and economic situation

Serbia has an economy based on manufacturing and exports. The state still has a strong weight in many areas of the economy, but the country is aiming to increase its own “market” culture and international integration (in 2000 it joined the IMF, the World Bank, the EBRD, and in January of this year they started negotiations for EU membership).

A predominant weight is held in this country by foreign investments, which have been attracted in the past with a policy of economic incentives (other strengths are the Free Trade Agreements that connect Serbia with important markets, such as the Russian and Turkish markets and a skilled work force of low cost). Among the most innovative points of Serbia’s economic system, it is worth mentioning, no doubt, the strong commitment of the country to improve its market culture and the “rule of law” and the efficiency of the public system and to streamline the bureaucracy.

The priorities of its government formed in April 2014 are to improve the efficiency of the economic system and the investment climate through reforms regarding labor standards, privatization and bankruptcy law (passed by Parliament in late July and early August 2014), constructions and the judicial system.

Serbia and Italy

In 2013, Italy has strengthened its market position (the second largest trading partner in 2012) becoming the first trading partner of Serbia (2.38 billion dollars of goods exported to Serbia, while the import was equal to 2.36 billion – data: Serbian Statistical Institute).
Italy is also the first foreign investor in Serbia with a presence of about 500 companies, 20,000 people employed, a share of invested capital estimated at 2 billion euros and a turnover of around 2.5 billion euros.

For Italian companies Serbia represents an extension of the production platform that allows our companies to expand and diversify their offers, extending their projection on global markets.

Growing Sectors

Among the main business sectors: automotive sector (Fiat is the first foreign investment and the leading exporter of the country and about 1% of GDP of Serbia; the “500L” produced in plants of Kragujevac is getting great feedback on the market and in autumn the plant was brought to full production); banking sector (Intesa Sanpaolo and Unicredit hold 25% of the local market); insurance sector (Delta Generali and SAI-Fondiaria have 45% of the Serbian market); textiles (in Serbia, a strong presence on the market is that of the Benetton Group and, in the field of socks, Calzedonia, Pompea and Goldenlady); agriculture (there are good prospects for expanding cooperation in the export of machinery for agriculture and food-processing, Ferrero is preparing a project for the cultivation of quality hazelnuts in Serbia).

 

EsayBalkans Team