FEAS Yearbook FEAS Yearbook 2015 | Page 44

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT 2015 SERBIA Country Facts key CAPITAL MARKETS INFORMATION Serbia Legal According to the Law on Companies and Law on Capital Market Capital Belgrade Regulation Law, By-Laws, Belex rules and regulation Area (km 2 ) 88,407 Securities market regulations Securities and Exchange Commission Trading rules Trading rules within the BELEX Rules of Business Operations Surveillance Rules of Business Operations and SEC regulations Corporate actions According to the Law on Companies, Law on Capital Market and Low on Audit and Accounting Exchange rate (1 USD) 99.46 Trading halts regulations According to the BELEX Rules of Business Operations Time Zone GMT+1 Investor protection According to the Law and BELEX Rules of Business Operations Calling Code 381 Clearing and settlement period T+2 Country Population (million) 7.2 GDP (USD billion) 45,519 Currency Serbian Dinar (RSD) key economıc data UNEMPLOYMENT, TOTAL (% OF TOTAL LABOR FORCE) GDP GROWTH (ANNUAL %) INFLATION, CONSUMER PRICES (ANNUAL %) 25 10 20 20 15 5 15 10 10 0 5 5 0 -5 Serbia Europe & Central Asia (developing only) 0 Serbia Europe & Central Asia (developing only) Serbia Europe & Central Asia (developing only) Source: World Bank Source: World Bank Source: World Bank Country Outlook to growth. Industrial output fell by 6.5% in 2014, with the energy sector particularly hit by the floods. investor perception and growing interest for investing in Serbia could be expected to help translating a weak economic recovery into new employment and poverty reduction in a tight fiscal environment. In order to achieve so imperative is to implement and follow through comprehensive structural reforms and create more competitive and productive environment that could propel the country’s economic growth, with positive impulses also coming from the international community in terms of increasing global liquidity, due to the ECB quantitative easing program, and more favorable oil prices. Previous decade has been very dramatic in terms of vibrant political activity. Spillover of the international financial crisis along with the local factor contributed to the slowdown of necessary reforms. Nevertheless, two major steps have been made toward greater fiscal responsibility and reengagement on critical issues such as state owned enterprise reform and public sector efficiency. In January 2014, Serbia started membership talks with the European Union (EU) after making significant progress in negotiations with Kosovo 1 officials. Serbia’s economy moved back into a recession in 2014, which could primarily be contributed to the disastrous floods in May, hitting Central and Western Serbia, leading to an estimated annual decline in real GDP of 1.8% in 2014. Nevertheless, true reasons could be found in the poor economic ambiance and growing macroeconomic uncertainties. A drop in the private consumption and private investment contributed to almost all of the contraction in activity. Although exports still contributed positively to growth, their weakening performance was offset by imports, resulting in a small negative net contribution of external demand 42 Throughout 2014 inflationary pressures from dinar depreciation were neutralized by the low demand. Hence, inflation remained below the targeted corridor of the NBS of 4±1.5%, averaging around 2%. Core inflation averaged 0.5% in 2014. The central bank decreased the key rate to 8%. Unemployment rates remain high. As the pace of economic contraction moderated throughout 2014, the average unemployment rate declined from 22.1% in 2013 to 18.9% in 2014. However, only two-thirds of the improvement in 2014 was the result of increased employment; the rest was due to an increase in the inactive population and a declining labor force participation rate. Youth unemployment rate remains particularly high at 47%. This designation is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the Kosovo Declaration of Independence. 1 Serbia has initiated reforms while struggling to recover from the impact of the international financial crisis - which led to an increase in poverty. Positive effects from the fiscal consolidation along with the IMF arrangement confirm intention aimed at strengthening public finances and providing sustainable recovery. Following that, more favorable FULL MEMBERS