Serbia - Economy

Economy

Main article: Economy of Serbia

Serbia has a transitional economy mostly dominated by services, manufacturing and agriculture. The economy is heavily reliant on exports and foreign investment. Since 2000, Serbia has attracted over $25 billion USD in foreign direct investment (FDI). Although average GDP growth over ten years has been 4.45% per year, Serbia suffers from a high unemployment rate (23.7% as of February 2012) and an unfavorable trade deficit.

Serbia is classed as an upper-middle income economy. GDP (PPP) for 2012 is estimated at $80.282 billion or $10,811 per capita (PPP). GDP per capita stood at 35% of the EU average in 2011.

Serbia has free-trade agreements with the EFTA and CEFTA, a preferential trade regime with the European Union, a Generalized System of Preferences with the United States, and individual free-trade agreements with Russia, Belarus, Kazakhstan, and Turkey.

The major processed vegetable crops in Serbia are potatoes, tomatoes and pepper. Serbia grows about one-third of the world's raspberries and is a leading exporter of frozen fruit.

In July 2010, the credit rating agency Dun & Bradstreet rated Serbia's economy at DB4d, which remained the same since the last rating. There was expressed concern for the slower-than-expected recovery of the economy from the global financial crisis, along with the continuous high business risk due lowered credit capabilities, increasing company bankruptcy and generally poor economic prospects. The Agency also expressed concern for the high credit debt and large number of foreign banks in the financial sector, creating an increased risk of instability.

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Famous quotes containing the word economy:

    “I favor the policy of economy, not because I wish to save money, but because I wish to save people. The men and women of this country who toil are the ones who bear the cost of the Government. Every dollar that we carelessly waste means that their life will be so much the more meager. Every dollar that we prudently save means that their life will be so much the more abundant. Economy is idealism in its most practical terms.”
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    “Wise men read very sharply all your private history in your look and gait and behavior. The whole economy of nature is bent on expression. The tell-tale body is all tongues. Men are like Geneva watches with crystal faces which expose the whole movement.”
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    “Even the poor student studies and is taught only political economy, while that economy of living which is synonymous with philosophy is not even sincerely professed in our colleges. The consequence is, that while he is reading Adam Smith, Ricardo, and Say, he runs his father in debt irretrievably.”
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