Economy of Serbia Crash Course

Serbia’s economy is transitional and it
is dominated by the market forces mainly. Their economy was impacted
highly by the civil war, but now it is
improving with time. The economy of Serbia is service based
which accounts to 2/3 rd of the GDP. As of now, this country holds the 34th
rank among the 44 European countries. Their overall score is
below the regional average, but it is definitely
above the world average. The economic freedom score
of this country is 63.9 which makes it to rank
69th freest in 2019 index. Nominal GDP of Serbia reached
to $47.654 billion in 2018 while the purchasing power parity
reached at $112.512 billion. Agriculture and industry both
contribute to the economy of Serbia. Mining, automotive industry,
energy, machinery, etc. are the strongest sectors in the economy. They are involved in trading
as well and their main trading partners are Germany,
Russia, China and Italy. Tech industry in Serbia While all other industries
are growing over time in this country, the tech industry too
is booming to a great extent. In fact, it is IT that is
helping this country to stand up from the economic stagnation
following the Balkan wars. It is really surprising
that the IT sector only contributes to 10% of the
GDP of this country alone. The technology exports in Serbia
were more than $1 billion in 2018 which witnessed a huge
growth from the previous year. The IT industries are developing
software in Serbia for almost all kind of industries including agriculture,
medicine, online game testing, etc. Major companies like IBM, Microsoft
and Intel have already established development centers in Serbia
and many are waiting for so. The current president of Serbia has
announced that the IT sector in their country is so promising which is
actually the future of their economy. Rule of law The foreign investors
and Serbia citizens have full rights of ownership
of the private property. But, unfortunately, the enforcement
of those rights is actually very slow. However, a new law
regarding the enforcement is adopted in 2018 which will
make things much simpler. But again, political influences
and other barriers like corruption can act as an obstacle in
the growth of Serbia economy. Open markets Serbia is involved in
exports and imports both. The main exports of this country
are iron, steel, rubber, cloth, automobiles, fruits, vegetables,
electronic appliances and more. The total value of exports and
imports is equal to 113.7% of the GDP. The applied tariff rate is 6.5%. But the overall trade freedom is
undercut by the non-tariff barriers. Almost 77% of the
Serbian adults have accounts with the formal
banking institution. Overall this country is
experiencing a good economic growth. They have witnessed an average growth
in GDP of 1.3% for the last 5 years. The GDP structure of the
country in 2015 was as follows: Industry-25.2% Services- 67.1% and Agriculture-7.7% This rate is expected to increase
over the coming years and they can make the country’s ranking
definitely higher in the world.

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