The economic landscape of Serbia in 2023 exhibited robust profitability and strengthened financial capacities, according to the “Annual Report on Business Operations in 2023” released today by the Agency for Economic Registers. A total of 110,808 companies, employing 1,307,587 workers, contributed to these positive indicators, achieving revenues of 18.671 trillion dinars, marking a 2.9 percent increase from the previous year. Total expenditures also rose by 2.3 percent to 17.496 trillion dinars.
This marks the ninth consecutive year of profitability for Serbia, with a notable positive net result of 972.4 billion dinars, up by 12.3 percent compared to the previous year. More than three fifths of the companies (67,831) reported a net profit totaling RSD 1.297 trillion, a 3.6 percent increase year-on-year. Conversely, 29,412 companies reported a net loss, amounting to 324 billion dinars, reduced by 15.8 percent, while 13,565 companies did not register any net result.
Profitability was widespread across all sectors, with wholesale and retail trade leading the way, contributing 194.3 billion dinars to the economy, followed closely by the manufacturing (159.7 billion dinars) and mining (145.1 billion dinars) sectors. Notably, the electricity, gas, steam and air conditioning supply sector also turned profitable in 2023, reversing losses from the previous year with 139.5 billion dinars in profit.
Across different company sizes, large companies emerged as the most profitable, generating a total profit of 557.9 billion dinars, followed by medium-sized (194.7 billion dinars), small-sized (189.5 billion dinars), and micro companies (30.2 billion dinars).
Public companies also recorded positive results, reporting a profit of 7.3 billion dinars, a significant turnaround from the previous year’s loss of 74.9 billion dinars. Conversely, companies in bankruptcy and liquidation faced larger losses amounting to 15.5 billion dinars.
The total business assets of companies reached approximately 23.349 trillion dinars, a 7.6 percent increase from the previous year. Capital levels rose to 10.586 trillion dinars, up by 8.4 percent, while total liabilities grew at a slower pace of 5.8 percent to 14.369 trillion dinars.
Public enterprises, however, experienced reduced financial capacities due to changes in legal structures, with business assets totaling 1.951 trillion dinars and capital at 1.125 trillion dinars, reflecting a decrease of one-third.
Overall, while the total losses of companies by the end of 2023 increased marginally to 4.037 trillion dinars, losses exceeding capital decreased by 2.3 percent to 1.606 trillion dinars. Public companies halved their losses to 292 billion dinars, with 63 billion dinars exceeding capital, while companies in bankruptcy and liquidation accounted for a quarter of total losses at 1.005 trillion dinars, with 746 billion dinars exceeding capital.
Small companies demonstrated strong net working capital at 600.9 billion dinars, while large systems reported the highest increase to 425.7 billion dinars. Additional long-term capital is needed for optimal operations, with requirements estimated at 228.9 billion dinars for inventory financing and 913 billion dinars for overall long-term capital.
Public enterprises faced reduced negative net working capital at 148 billion dinars but lacked 276 billion dinars in long-term sources to cover fixed assets and inventories fully. Companies in bankruptcy and liquidation reported negative net working capital of 656 billion dinars, with a deficit of 720 billion dinars in long-term capital required to meet obligations.
Overall, Serbia’s economy in 2023 showcased resilience and growth across various sectors, setting a positive trajectory amidst evolving economic conditions.
