Serbia’s economy experienced heightened investment and credit activity last year, contributing to a 2.5% increase in GDP. According to data from the Business Registers Agency (APR), companies expanded their overall business operations, generating total revenues of 18.67 trillion dinars, marking a 2.9% rise from 2022.
The business sector continued its profitable streak for the ninth consecutive year, achieving a positive net result of 972.45 billion dinars, up by 12.3% compared to the previous year. Among the fourteen sectors analyzed, eight saw a net profit increase over the previous year. Bloomberg Adria delved into which sectors saw improved profitability and the factors driving these gains.
Leading the charge was the electricity supply sector, which saw its net profit surge by about 300% in 2023. This significant growth was fueled by a substantial increase in production, driven by favorable hydrological conditions. Economist Ivan Nikolić from the Institute of Social Sciences attributed this to abundant production levels in 2023, which rebounded from lower output the previous year. He noted that despite a 9% production dip in the first five months of the current year, this was a return to sustainable production levels matching capacity. Additionally, early 2023 witnessed higher electricity prices due to disruptions in Ukraine, further boosting sector profits.
Among other sectors, information and communication saw a 33.3% increase in net profit, reaching approximately 109.7 billion dinars in 2023 from 82.3 billion dinars in 2022. The real estate sector also performed well, achieving a 15.7% profit increase to around 32.7 billion dinars in 2023 from 28.3 billion dinars in 2022.
The hospitality sector saw an 11.5% rise in profits, reaching about 15.2 billion dinars in 2023 from 13.6 billion dinars in 2022, driven by increased tourist inflows and higher prices.
The construction sector reported a 6.8% increase in profits, while transportation and storage grew by 4.2%. Administrative and support services, as well as financial and insurance activities, also saw profit growth compared to 2022.
Overall, despite challenges in some sectors, Serbia’s economy demonstrated resilience and growth in 2023, supported by increased business activities and favorable economic conditions in key sectors.
