“Serbia has taken important steps to implement the reforms necessary for attracting foreign and domestic investors. We are pleased to be further strengthening the investment climate and enhancing governance.” – Sir Suma Chakrabarti, EBRD President (2015)

Serbia is relatively small economy with a GDP of US 41.5 billion as of 2017, that heavily relies on manufacturing and exports, mainly driven by foreign investment. Economic growth for 2018 is projected to 4%. Serbia’s economy is expected to expand in the range 3.5% – 5% per year, over the medium term, with main drivers of growth being investment and exports. Top exports include IT services, cars, steel, electric motors, and agricultural products, while top imports include vehicle parts, cars, oil and gas, and packaged medicaments.

Serbia also heavily invested in improving the means of doing business, such as process to start a business, tax policy and contract enforcement¹. As a result, Serbia attracts largest amount of foreign direct investments in ex-Yugoslavia region. FDI inflow in 2018 is expected to reach €2.6 bn. M&A activity in Serbia has seen a sharp increase in 2018 compared to previous years, when it traditionally lacked the volumes and depths of neighboring countries.

Sources: 1. The World Bank (2018) Overview.