South East Europe, central Balkans; Time zone GMT+1.
Geo-strategic position at the crossroads of Pan-European Corridors 7 and 10, a major link between Europe and Asia.
8 neighboring countries: Hungary, Bulgaria, Romania, FYR Macedonia, Albania, Bosnia-Herzegovina, Croatia, and Montenegro.
88,361 km² of territory – rich fertile plains in the north, ancient mountains and hills to the south.
Moderate continental climate, average temperature -1°C in January and 22°C in June, well distributed rainfall.
7.5 mn consumers in Serbia, 2nd largest market in the region.
30 mn consumers in South East Europe with duty-free access.
150 mn consumers in the Russian Federation with customs-free access.
Preferential trade status with USA and the EU.
Overall duty-free exporting potential: 1 bn consumers.
Serbia – number 1 business reformer in the world (World Bank 2006 report).
Currency – Serbian Dinar (RSD); 1 EUR = 80. 12 RSD during 2007.
7.5 % GDP growth rate, GDP per capita $5,764 in 2007.
Reduced inflation – 10 % in 2007.
€1.7 bn National Investment Plan funds from state budget surplus.
$14 bn foreign currency reserves, and growing.
Exports $9 bn in 2007 (37 % growth) most to Italy, CEFTA, Germany, Russia.
Taxes & Incentives
State grants from €2,000 to €10,000 per new job created for greenfield/brownfield projects.
10 % corporate profit tax rate – among the lowest in Europe.
8 to 18 % VAT rate – among the lowest in CEE.
10-year corporate profit tax holiday for large investments.
Tax credits up to 80 % of the amount invested in fixed assets.
5-year corporate profit tax holiday for concessions.
Duty-free import of raw materials, semi-products, components, and equipment.
$13.5 bn total inward FDI inflow since 2001, 90 % average annual FDI growth rate.
Serbia – The place of largest greenfield investments in SEE 2004-2006 (OECD).
Belgrade – The City of the Future and top FDI location in South Europe 2006/07 (Financial Times).
Major investors: Telenor, Philip Morris, Mobilkom, Banca Intesa, Coca-Cola, Microsoft, Stada, InBev, Lukoil, U.S. Steel and many others.
Labor force (age 15-64) exceeds 5 mn, 52 % with secondary or higher education.
Vast labor pool – unemployment rate 21.6 % (2006).
Competitive labor costs – €484 per month, gross (2007).
11. 7 % average growth of industrial productivity in the past 5 years.
700,000 university or college graduates, 1/3 from technical faculties.
42 % of the population speaks English (Gallup International).