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
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