Companies in Serbia ended last year with a positive net result of EUR 5.79 billion

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Companies in Serbia ended last year with a positive net result of EUR 5.79 billion, preliminary data from the Agency for Business Registers (APR) showed.

Business year 2021 in Serbia was marked by the recovery of economic activity from the pandemic, with an increase in gross domestic product (GDP) by 7.4 percent compared to the previous year, while industrial production grew by 6.3 percent.

The data indicate that economic growth in our country was achieved with the strengthening of investment and foreign trade activities, as well as with the increase in private demand.

The high rate of inflation (7.9 percent) is interpreted as a reflection of foreign trade factors, while the exchange rate remained relatively stable – the value of the dinar against the euro was almost unchanged, and compared to the dollar it decreased by 8.6 percent.

“The favorable economic environment and stimulating measures of economic policy reflected further growth in employment. In 2021, companies employed a total of 1,238,984 workers, which is 11,531 workers more than the previous year”, the APR document states.

The total volume of business activities was increased, so total revenues of 14.4 billion dinars (122.9 billion euros) and total expenditures of 13.6 billion dinars (115.9 billion euros) were realized. The former are higher by 17.6, and the latter by 15.7 percent on an annual basis.

The net profit was realized in the amount of 945.3 billion dinars (more than eight billion euros), higher by 42.0 percent, while the net loss amounted to 265,398 million dinars (about 2.3 billion euros) and decreased by 7.3 percent. 

Entrepreneurs

Positive trends are also present among entrepreneurs.

They achieved annual growth in the volume of total business activity (11.3 percent), and total revenues of 1.08 billion dinars (9.26 billion euros) were realized.

Entrepreneurs achieved a positive net result of 44.41 billion dinars (378.38 million euros), which is 30.6 percent higher than last year.

Financial institutions

Financial institutions showed resilience during the crisis period and operated profitably in 2021, APR assesses.

Banks, which form the backbone of the domestic financial sector, recorded an increased positive result of the period by 19.4 percent, with 49.34 billion dinars (420.38 million euros), whereby 20 banks operated with a profit and three with a loss.

The insurance sector operated with a positive net result of 11.10 billion dinars (94.64 million euros), which is 13.9 percent less than last year, with all 20 insurance companies making a net profit, Bloomberg reports.