Novi Sad - Economy

Economy

Novi Sad is the economic centre of Vojvodina, the most fertile agricultural region in Serbia. The city also is one of the largest economic and cultural centres in Serbia and former Yugoslavia.

Novi Sad had always been a relatively developed city within Yugoslavia. In 1981 its GDP per capita was 172% of the Yugoslav average. In the 1990s, the city (like the rest of Serbia) was severely affected by an internationally imposed trade embargo and hyperinflation of the Yugoslav dinar. The embargo and economic mismanagement lead to a decay or demise of once big industrial combines, such as Novkabel (electric cable industry), Pobeda (metal industry), Jugoalat (tools), Albus and HINS (chemical industry). Practically the only viable remaining large facility is the oil refinery, located northeast of the town (along with the thermal power plant), near the settlement of Šangaj.

The economy of Novi Sad has mostly recovered from that period and it has grown strongly since 2001, shifting from industry-driven economy to the tertiary sector. The processes of privatization of state and society-owned enterprises, as well as strong private incentive, increased the share of privately-owned companies to over 95% in the district, and small and medium-size enterprises dominated the city's economic development.

The significance of Novi Sad as a financial center is proven by numerous banks such as Vojvođanska Bank, Erste Bank, Kulska Bank, Meridian Bank, Metals Bank, NLB Continental Bank and Panonska Bank; and second largest insurance company in Serbia - DDOR Novi Sad. The city is also home to the major oil company and Gas company - Naftna Industrija Srbije and Srbijagas. It is also the seat of the wheat market.

At the end of 2005, Statistical office of Serbia published a list of most developed municipalities in Serbia, placing City of Novi Sad at No.7 by national income, behind some Belgrade municipalities and Bečej, with 201.1% above Serbia's average.