FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2012
BELGRADE STOCK EXCHANGE
2011 ECONOMIC DEVELOPMENTS
Serbia has persisted in its commitment to move
towards the EU membership. The country,
however, still faces a number of domestic and
international challenges which include slow
progress of the reform process while mitigating
the effect of the global and euro zone economic
crisis in Serbia, taking the necessary steps
to combat corruption and taking responsible
attitude when dealing with the situation in
Kosovo, by pursuing all peaceful, political, and
diplomatic means to retain Kosovo. In 2011
Serbia continued with its policy of accessing
the EU and has begun to implement a broad
reform agenda to advance the government’s EU
integration goals. The European Commission
issued its opinion on Serbia on October 12,
2011 recommending that Serbia be granted
formal EU candidate status.
While considerable efforts have been made in
transforming the economy over the past years,
the pace of reforms slowed down in the wake of
the recession. A number of structural rigidities
persist, restraining the country’s capacity
to create a viable market economy and a
business-friendly environment. The privatization
and/or liquidation of public enterprises process
has been ongoing since 2001. Privatization of
the socially-owned companies continued in the
wake of the recent crisis but at a slower pace
given unfavorable market conditions.
New Law on Capital market was passed
and came into effect in November 2011. It
is aimed at increasing investor protection,
downsizing systemic risk and enhancing market
liberalization. New Law on Companies followed,
to harmonize with the EU Directives, latest
solutions from the comparable laws and with the
new Law on Capital Market, as well to remove
restrictions from the process of incorporation
of companies, foremost to enhance legal
framework of Serbia.
The estimations for Q4 2011 show that real
y-o-y GDP growth at last year’s prices was only
0.8%. Taking that into account, real gross GDP
growth in 2011 equaled 1.9%. Trade flows and
manufacturing succumbed to spillover effects
from the worsening euro zone crisis. Since the
EU crisis, macroeconomic stability has been
broadly maintained, although the economy has
been hit by the downturn.
In December 2011, industrial production
declined by 0.5% relative to November, posting
only a 0.1% increase y-o-y. In the period Jan-
Dec 2011, relative to the same period 2010,
industrial production increased by 2.1%. Broken
down by sector, a y-o-y growth in December
was recorded for mining (19%), electricity, gas,
steam and air-conditioning supply (14.2%),
while manufacturing contracted by 4.8%.
According to seasonally adjusted data,
manufacturing increased in December by
0.2%. Within manufacturing, the largest positive
contribution to total production came from the
production of basic pharmaceutical products
and preparations and coke and petroleum
products. Conversely, the greatest negative
contribution to total industry was provided by
the production of food, chemicals and chemical
products and base metals.
Retail trade turnover in 2011, compared to 2010
decreased by 7.3% at current prices and by
16.7% at constant prices.
In 2011 the value of exports, expressed in
Euros, went up by 14.1%, while imports rose by
14.5%.
Number of employees in 2011 year is lower
than the previous year by 2.8%. Number of male
employees decreased 4.6% and the number of
employed women by 0.5%.
The average net salaries and wages paid in the
period Jan-Dec 2011 in the Republic of Serbia,
compared to the average net salaries and
wages paid in the period Jan - Dec 2010, were
by 11.2% increased in nominal terms and by
0.2% increased in real terms.
At end-2011, inflation came close to the upper
bound of the target (6%), settling at 7% year-on-
year. Despite exhibiting high short-term volatility,
overall in 2011, the exchange rate of the dinar
was relatively stable with minimum intervention
by the NBS (net sale of EUR 45 mln).
Source: NBS, Statistical Office of the Republic of Serbia
Key Information Contacts
National Bank of Serbia www.nbs.rs
Securities and Exchange Commission www.sec.gov.rs
Central Securities Depository and Clearing House www.crhov.rs
Ministry of Economy and Regional Development www.merr.gov.rs
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