The Serbian Chamber of Commerce (PKS) has released the results of its survey on the business activity of economic entities, revealing expectations of a stable business climate, growth in turnover and exports, and positive indicators for liquidity and employment.
During the first quarter of 2024, the Serbian economy maintained stable performance, with 52 percent of respondents anticipating an increase in turnover for the second quarter. The survey, conducted in April among 1,672 economic entities employing over 235,000 workers, indicates that over half of the participants foresee similar business conditions in the upcoming quarter, with 40 percent expecting improvement.
In terms of resource utilization, companies reported an average capacity utilization of 72 percent in the first quarter. Lower resource costs were cited as a key factor for more efficient business, according to 56 percent of respondents.
Looking ahead, 45 percent of business owners anticipate growth in exports for the second quarter, while 47 percent expect levels to remain consistent. Additionally, 93 percent of importers predict stable or increased import volumes compared to the previous quarter.
Financially, 80 percent of surveyed companies report having sufficient resources for optimal business financing, with 95 percent not anticipating a reduction in their workforce in the next quarter.
In specific sectors, optimism abounds. Sixty-five percent of respondents in the tourism sector expect higher traffic, while growth is also anticipated in construction, energy, wood industry, and trade. Conversely, around 16 percent of respondents in the electronic communications industry foresee a decrease in turnover for the second quarter of 2024.
The labor market remains stable, with a slowdown in inflation contributing to real growth in average wages. Registered employment strengthened throughout 2023, resulting in an unemployment rate of 9.1 percent by the year’s end.
The Serbian economy exhibited a real GDP growth rate of 2.5 percent in 2023. Projections from the World Bank, the International Monetary Fund, and the National Bank of Serbia (NBS) forecast a growth rate of 3.5 percent for the current year. The NBS projects real GDP growth to accelerate between three and four percent in 2024, driven by increased private consumption and investment growth in traffic, energy, and communal infrastructure projects.
In 2022, companies surveyed by the PKS reported a total business income of 25.2 billion euros. Additionally, merchandise exports in the first quarter of 2024 reached 2.2 billion euros, marking a 19 percent increase compared to the same period in 2023, according to data from the Republic Institute of Statistics.
