AmCham member companies have expressed moderate satisfaction with the business climate in Serbia, giving it a rating of 3 out of 5. This reflects a gradual increase in satisfied members and a decrease in dissatisfied ones, according to the annual AmCham survey on business conditions and investor confidence, titled “Twelfth Lap Time.”
This year, the number of satisfied members is the highest, while dissatisfaction is at its lowest since the survey began in 2013.
Small and micro enterprises, which are traditionally part of the survey but are not AmCham members, rated the business climate at 2.8. However, when asked about their business performance in 2024, both AmCham members and small enterprises reported exceeding expectations, with better results compared to the previous year.
Stefan Lazarević, President of AmCham, noted that this year’s economic performance is comparable to pre-pandemic levels in 2019. He emphasized the importance of continuing institutional reforms in collaboration with the Serbian government to sustain and accelerate this positive trend.
Key areas for reform include the digitalization of the judiciary, the introduction of electronic court systems, recognition of electronic documents in labor law, and regulatory improvements to encourage investments in green energy.
Serbian Prime Minister Miloš Vučević stated that the government views AmCham as a partner in addressing challenges to create a better business environment. He highlighted the encouraging data from the survey, which indicates that three-quarters of AmCham members see potential for expanding their investments in 2025.
Looking ahead to 2025, optimism is growing, with about 75% of AmCham members expecting increased business activity and new investments. Half of them believe they will also increase hiring. Small and micro businesses, while somewhat more cautious, are also optimistic, with a historic high of 50% expecting business growth and a third planning to hire new staff.
As in previous years, the availability of labor remains the biggest challenge for businesses. Companies have identified key issues such as high salary expectations from candidates, a shortage of skilled workers in the domestic market, and high tax burdens on wages.
To address these challenges, small and micro enterprises suggest reducing the tax burden on labor. In contrast, larger companies emphasize the need for greater investment in the education system to meet the demand for qualified labor.
The previously significant challenge of high inflation has decreased in importance, indicating a stabilization of macroeconomic conditions both domestically and globally.
Regarding long-term economic growth, AmCham members have consistently identified the reduction of corruption and the establishment of the rule of law and an efficient judiciary as top priorities for the Serbian government to improve the business environment. Almost half of the members also emphasize the importance of developing e-governance and digital transformation, alongside implementing a green agenda in energy and environmental protection.
A growing need for flexibility in labor regulations has also emerged, with an increasing number of companies prioritizing the modernization of labor laws to adapt to contemporary working conditions and recognize new forms of employment. While there is broad agreement on these priorities, small and micro enterprises place particular importance on enhancing transparency and predictability in the tax system and improving the efficiency of the Tax Administration.
The “Twelfth Lap Time” survey conducted by AmCham in collaboration with Ipsos Strategic Marketing took place from July to October 2024. Member companies participated by completing online questionnaires, and face-to-face or video interviews were also conducted. Given that AmCham primarily represents large and medium-sized companies, the survey included a sample of non-member micro and small businesses to provide a comprehensive view of the overall economy and the necessary steps for faster growth.
