In 2023, Serbia’s economy saw a slight decrease in its overall indebtedness ratio, dropping from 1.68 to 1.61, according to a report by the Business Registers Agency. This indicates that for every dinar of their own capital, businesses in Serbia borrowed 1.61 dinars. Despite this, the total obligations of corporate entities in Serbia rose to 14.368 trillion dinars by the end of last year.
The Business Registers Agency highlighted that during 2023, businesses increased their financial capacities and modestly improved their financial positions, resulting in positive developments in indebtedness and liquidity.
The growth rate of total obligations in 2023 slowed to 5.8%, compared to a more significant increase of 11.1% in the previous year, reaching 14.368 trillion dinars by the year’s end.
The economy operated profitably in 2023, with a net profit of 972 billion dinars, marking the ninth consecutive year of profitability, as reported by N1. Over two-thirds of corporate entities (67,831) recorded a net profit totaling 1.297 trillion dinars, a 3.6% increase from 2022.
Conversely, 29,412 businesses operated at a net loss amounting to 325 billion dinars, a decrease of 15.8% compared to the previous year. Meanwhile, 13,565 businesses did not report a net result in 2023.
The Manufacturing sector stood out with substantial financial capacities, including 5.024 trillion dinars in business assets and 2.315 trillion dinars in capital. It accounted for 22.1% of the total corporate debt (3.175 trillion dinars) and 20.4% of own funding sources (1.815 trillion dinars). The sector’s overall indebtedness ratio slightly decreased from 1.79 to 1.75.
Other sectors showed varied financial dynamics: Wholesale and Retail Trade reduced their indebtedness ratio from 2.09 to 1.95, indicating improved financial health, while Construction maintained a high indebtedness ratio of 2.2.
The Electricity, Gas, Steam, and Air Conditioning Supply sector reduced its total obligations by 6.3%, coupled with a 12.8% increase in own funding sources, leading to a decrease in the overall indebtedness ratio from 1.15 to 0.95.
In the Information and Communication sector, significant growth was noted in business assets (up 20.2%) and capital (up 18.2%), totaling 1.469 trillion dinars and 586 billion dinars, respectively. The sector’s overall indebtedness ratio saw a slight increase from 1.61 to 1.64, reflecting its strategic use of slower-paced borrowing against its own resources.
Overall, despite challenges, Serbian businesses navigated 2023 with improved financial resilience and strategic adjustments in borrowing and financial management.
