Serbia Economy

Is Serbia a rich country?

Serbia has a transitional economy largely dominated by market forces, but the state sector remains significant in certain areas. The economy relies on manufacturing and exports, driven largely by foreign investment. MILOSEVIC-era mismanagement of the economy, an extended period of international economic sanctions, civil war, and the damage to Yugoslavia's infrastructure and industry during the NATO airstrikes in 1999 left the economy worse off than it was in 1990. In 2015, Serbia’s GDP was 27.5% below where it was in 1989.

After former Federal Yugoslav President MILOSEVIC was ousted in September 2000, the Democratic Opposition of Serbia (DOS) coalition government implemented stabilization measures and embarked on a market reform program. Serbia renewed its membership in the IMF in December 2000 and rejoined the World Bank and the European Bank for Reconstruction and Development. Serbia has made progress in trade liberalization and enterprise restructuring and privatization, but many large enterprises - including the power utilities, telecommunications company, natural gas company, and others - remain state-owned. Serbia has made some progress towards EU membership, gaining candidate status in March 2012. In January 2014, Serbia's EU accession talks officially opened and, as of December 2017, Serbia had opened 12 negotiating chapters including one on foreign trade. Serbia's negotiations with the WTO are advanced, with the country's complete ban on the trade and cultivation of agricultural biotechnology products representing the primary remaining obstacle to accession. Serbia maintains a three-year Stand-by Arrangement with the IMF worth approximately $1.3 billion that is scheduled to end in February 2018. The government has shown progress implementing economic reforms, such as fiscal consolidation, privatization, and reducing public spending.

Unemployment in Serbia, while relatively low (16% in 2017) compared with its Balkan neighbors, remains significantly above the European average. Serbia is slowly implementing structural economic reforms needed to ensure the country's long-term prosperity. Serbia reduced its budget deficit to 1.7% of GDP and its public debt to 71% of GDP in 2017. Public debt had more than doubled between 2008 and 2015. Serbia's concerns about inflation and exchange-rate stability preclude the use of expansionary monetary policy.

Major economic challenges ahead include: stagnant household incomes; the need for private sector job creation; structural reforms of state-owned companies; strategic public sector reforms; and the need for new foreign direct investment. Other serious longer-term challenges include an inefficient judicial system, high levels of corruption, and an aging population. Factors favorable to Serbia's economic growth include the economic reforms it is undergoing as part of its EU accession process and IMF agreement, its strategic location, a relatively inexpensive and skilled labor force, and free trade agreements with the EU, Russia, Turkey, and countries that are members of the Central European Free Trade Agreement.

Serbia Economy Data

What is the GDP of Serbia?

GDP - Gross Domestic Product (PPP) $95,840,000,000 (USD)
GDP - official exchange rate $36,560,000,000 (USD)
GDP - real growth rate 0.5%
GDP Per Capita $13,600.00 (USD)
GDP by Sector- agriculture 10.4%
GDP by Sector- Industry 38.5%
GDP by Sector- services 51.1%
GDP - composition, by end use household consumption: 81%

government consumption: 17.9%

investment in fixed capital: 17.8%

investment in inventories: -10.1%

exports of goods and services: 46%

imports of goods and services: -52.6%
Population Below Poverty Line 8.8%
Inflation Rate 10.3%
Labor Force 2,950,000
Labor Force By Occupation- agriculture 23.9%
Labor Force By Occupation- industry 16.5%
Labor Force By Occupation- services 59.6%
Unemployment Rate 19.2%
Annual Budget $16,470,000,000 (USD)
Budget Surplus or Deficit - percent of GDP -4.9%
Public Debt (% of GDP) 53.1%
Taxes and other revenues - percent of GDP 40%
Major Industries machine building (aircraft, trucks, and automobiles; tanks and weapons; electrical equipment; agricultural machinery); metallurgy (steel, aluminum, copper, lead, zinc, chromium, antimony, bismuth, cadmium); mining (coal, bauxite, nonferrous ore, iron ore, limestone); consumer goods (textiles, footwear, foodstuffs, appliances); electronics, petroleum products, chemicals, and pharmaceuticals
Industrial Growth Rate 3.2%
Agriculture Products cereals, fruits, vegetables, tobacco, olives; cattle, sheep, goats
Child Labor - % of children ages 5-14 4%
Child Labor - # of children ages 5-14 36,141
Commercial Bank Prime Lending Rate 13.85%

Labor Force by Occupation- As reported by Serbia

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