Serbia Annual Report 2019

Featuring
risk indices
Serbia
Statista Country Report
April 2019
Statista Country Reports
Dear Reader,
Find out more about Serbia in our report focusing on the general
economy, trade, investment, society, consumers, infrastructure, and
politics.
The Statista Country Report provides a comprehensive overview of the Tytti Mälkki Volker Staffa
economy of Serbia, which can be relevant for manufacturing, foreign
direct investment, and the importing and exporting business. Gain
insight into the major trends in Serbia in order to assess the risks and
opportunities relevant for international business.
Tytti Mälkki studied International Business in Copenhagen, São Paulo,

and Beijing. Oliver Sánchez studied International Business and Local
Comparative Development in Germany, Italy, Hungary, and Mexico.
Volker Staffa studied Business with a focus on Logistics and Supply
Chain Management in Hamburg and Rhode Island. Melanie Mesloh
studied Innovation Economics and Entrepreneurship in Bremen. Oliver Sánchez Melanie Mesloh
Volker has been responsible for the Statista Industry Reports since 2012,
while Oliver joined Statista last year after several years in marketing and
strategy. Tytti has been part of Statista since summer 2017 and Melanie
joined Statista in fall 2018.
We wish you a valuable and insightful reading experience.
2
Agenda
01 Introduction 04 Fitch Solutions Risk Indices 07 Infrastructure

▪ Overview ▪ Development ▪ Digital
▪ Executive summary ▪ High and low performer ▪ Transport
▪ Business culture survey ▪ Global and regional comparison
02 Economy 05 Society 08 Politics

▪ Economic conditions ▪ Population ▪ Political profile
▪ Public finances ▪ Human Development Index ▪ Political environment
▪ Labor force
▪ Business environment
03 Trade & Investment 06 Retail & Consumption 09 Appendix
▪ Merchandise trade ▪ Consumption ▪ Data description and methods
▪ Commercial services ▪ Consumer behavior ▪ Glossary
▪ Investment ▪ eCommerce ▪ Authors
▪ FinTech
3
INTRODUCTION
▪ Overview
▪ Executive summary
▪ Business culture survey
4
Serbia
Overview (1/3)
General information:
Capital: Belgrade
Official language(s): Serbian
Main religion: Orthodox
Main ethnic group: Serb
Population: 8,762,027
Area: 77,474 sq km
- Population density: 80.3 people per sq km
Total real GDP1 in 2018: US$43.4bn
- GDP1 per capita: US$6,199.89
Corporate tax: 16.0%
Currency: Serbian dinars (RSD)
- Exchange rate: USD/RSD = 99.74
Time zone: UTC+1
Calling code: +381
1: Constant US$, see glossary for definition of current and constant US$
Source: CIA World Factbook 2018, United Nations, Department of Economic and Social Affairs, Population Division 2017, World Bank World
5 Development Indicators 2018, International Monetary Fund, World Economic Outlook Database 2018, Columbia University, Statista 2018
With 1.4 million in population, Belgrade is the largest
urban area
Overview (2/3)
Religious affiliation in % of population Ethnic groups in % of population

5.0%
3.1% Orthodox Other Bosniak Romani Hungarian Serb
1.0%
4.5% Catholic
0.8% Muslim
1.1% Protestant
3.5%
Atheist 9.1% 83.3%
Other 2.1%
84.6%
Undeclared or unknown 2.0%
Land use in % of total area Population in major urban areas in millions

Forest area Permanent cropland Arable land Other
1.4
31.1% 2.1% 29.6% 37.1%
Belgrade
6 Source: CIA World Factbook 2018, World Bank World Development Indicators 2018
Serbia sports one major airport – flight time from the
U.S. ca. 9 hours
Overview (3/3)
Major airports in Serbia1 Flight times from regional hubs in hours (no. of stops)2
Belgrade Nikola Tesla Airport, Belgrade Region Hub BEG
▪ Airport code: BEG 8:50
North America New York City, the U.S. (JFK)
▪ Distance to city center: 19 km (0)
Latin America & 14:50

São Paulo, Brazil (GRU)
Caribbean (1)
2:40
Europe & Central Asia London, the UK (LHR)
(0)
14:50
East Asia & Pacific Hong Kong, Hong Kong (HKG)
(1)
10:20
South Asia Delhi, India (DEL)
(1)
Middle East & North 5:55

Dubai, the UAE (DXB)
Africa (0)
13:10
Sub-Saharan Africa Johannesburg, South Africa (JNB)
(1)
1: Busiest airports by number of Passengers- Civil Aviation Directorate of the Republic of Serbia 2: Most direct and fastest routes are considered.
Flight times for 17th July 2019-Google Flights
Note: Distances to city center are based on the shortest route calculated by Google Maps and rounded to full kilometers
7 Source: Google Flights , Google Maps
Serbia is a upper middle income country with a
population growth of -0.3% in 2018
Executive summary (1/2)
Economy Trade & Investment

▪ Real GDP is forecast to increase by 3.9% p.a. from 2018 to 2023 ▪ Serbia registered a higher export trade flow than Germany in 2017
▪ Serbia had a fiscal deficit of -1.5% of GDP in 2017 ▪ With US$11.8 billion, manufacturers accounted for 69% of the total
merchandise export value in 2017
▪ Household consumption expenditure in Serbia was lower than in
overall Europe & Central Asia in 2017 ▪ Serbia registered a higher export trade flow than Germany in 2017
▪ Unemployment rate was 14.1% in 2017 and has been decreasing ▪ With US$1.4 billion, travel services accounted for 24% of total services
since 2010 export in 2017
▪ It takes 5.5 days to start a business in Serbia compared to 5.6 days in ▪ Inward FDI amounted to $3.2 billion in 2017
the U.S.
▪ Serbia experiences a growth in the emergence of new businesses

▪ In the “labor market” area, Serbia is 18.0 points behind the regional
high performer
▪ With an index score of 57.2, the operational risk in Serbia is relatively

low
8
In global comparison, Serbia has a high level of
human development
Executive summary (2/2)
Society, retail & consumption Politics

▪ Population decreased by 0.3%, which is below regional average, to a ▪ Serbia is a newer democracy
total of 8,762,027 in 2018
▪ Rule of Law in Serbia is low in global comparison
▪ In global comparison, Serbia has a high level of human development
▪ Control of corruption is rated as mediocre
▪ The retail market in Serbia is maturing
▪ Regulatory quality in Serbia is on a middle level
▪ Households in Serbia spend their biggest share of their income on
food and non-alcoholic beverages ▪ Moderate risks from political instability and threat of violence or
terrorism
▪ With US$429.2m and a share of 49.1%, eTravel generates the highest
digital revenues
▪ The total FinTech transaction value is forecast to grow by 67.7% from

2019 to 2023
▪ 77.0% used the internet and there were 102.4 mobile cellular
subscriptions per 100 people
9
Things you didn‘t know about Serbian business
culture
Doing business (1/2)
Communication standards Business meeting procedures
▪ Business communication is characterized by a mix of both direct and ▪ Formal business meetings are usually scheduled in advance, but last
indirect communication. Small talk is considered essential to build a minute changes are not uncommon.
personal rapport and establish any business relationships.
▪ Punctuality is not a widely accepted norm and meetings can last
▪ A firm handshake and maintaining eye contact are considered longer than scheduled.
important. However, one should take care to not stare at the other
person, as doing so is considered rude. Looking around is perceived ▪ Deadlines are not given much importance, with people often
as a sign of lacking interest and being unprofessional and/or bored. submitting work late.
▪ Serbian is widely used as a business language in the country, but ▪ Tattoos and piercings are not accepted in a business environment.
younger generations tend to also speak English. Language
interpreters are necessary to conduct business in the country for Conflict management
foreign businesspeople, as local business owners and older
generations prefer to converse in their local language.
▪ Serbians prefer resolving business conflicts through discussion.
▪ Hierarchy is very important in the business culture.
▪ Bargaining is very common.
Note: Please refer to the appendix for further information on the methodology of data collection
10 Source: Statista 2019
Things you didn‘t know about Serbian business
culture
Doing business (2/2)
Importance of business networks Gender equality
▪ Maintaining a strong business network through personal and ▪ While machismo attitudes remain strong, there has been a lot of
professional contacts is rather important to succeed in business. progress towards gender equality in the last decade.
Slow business months Work-life balance

▪ Business is slower than usual during the months of December and ▪ Work and personal life are overlapped in Serbia. People who work
January. together tend to spend their free time together too.
Note: Please refer to the appendix for further information on the methodology of data collection
ECONOMY
• Economic conditions
• Public finances
• Labor force
• Business environment
12
Real GDP is forecast to increase by 3.9% p.a. from
2018 to 2023
Economic conditions: real GDP (1/3)
Real GDP1 in billion US$2
+3.9%3
52.5
50.5
+0.8%3 48.5
46.7
44.9
43.4
40.9 41.7
40.0 39.0 39.6 39.2 40.2 39.5 39.8
38.8
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
International Monetary Fund estimate
1: See glossary for definitions 2: Constant US$, see glossary for definition of current and constant US$ 3: CAGR: Compound Annual Growth
Rate/average growth rate per year
13 Source: International Monetary Fund, World Economic Outlook Database 2018, Statista 2018
Real GDP growth at 4.0% was faster and real GDP per
capita at US$6,200 was smaller than average in 2018
Real GDP growth, real GDP and real GDP per capita1 in US$2 in Eastern Europe3 & Central Asia in 2018
Real GDP growth 2017-18 in % Regional average
Real GDP: US$500 billion
7
Turkmenistan
6 Armenia
Tajikistan Georgia
5 Uzbekistan
Serbia Belarus Hungary

4 Albania Romania
Montenegro Kazakhstan
Turkey
Moldova Bulgaria
3 Ukraine
Kyrgyzstan Eastern Europe & Central Asia Croatia
Bosnia and Herzegovina
2
Azerbaijan Russia
Macedonia
1
0
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000
Real GDP per capita in US$
1: See glossary for definitions 2: Constant US$, see glossary for definition of current and constant US$ 3: Countries with a real GDP per capita
higher than US$16,000 are excluded
Note: Regional average value refers to the 150 countries covered by the Statista Country Reports
Serbia has the 65th highest real GDP per capita
Real GDP per capita1 in US$2 in 2018

# Country GDP # Country GDP # Country GDP # Country GDP # Country GDP
1 Luxembourg 111,404 30 Slovenia 26,841 59 Turkmenistan 8,561 88 Ukraine 3,086 117 Angola 1,219
2 Norway 99,968 31 South Korea 26,783 60 Uruguay 8,328 89 Guyana 2,976 118 Pakistan 1,003
3 Qatar 82,251 32 Cyprus 25,312 61 Belarus 8,316 90 Armenia 2,804 119 Zimbabwe 992
4 Switzerland 79,567 33 Portugal 24,851 62 South Africa 7,492 91 Albania 2,731 120 Bangladesh 971
5 Ireland 78,275 34 Greece 23,614 63 Dominican Republic 7,336 92 Nigeria 2,422 121 Moldova 949
6 Iceland 67,038 35 Czechia 23,459 64 Botswana 7,081 93 Paraguay 2,416 122 Djibouti 887
7 Australia 64,087 36 Bahrain 23,054 65 Serbia 6,200 94 Azerbaijan 2,363 123 Rwanda 867
8 Denmark 62,543 37 Saudi Arabia 21,062 66 Brazil 6,164 95 Algeria 2,313 124 Laos 864
9 Singapore 56,354 38 Slovakia 20,718 67 Suriname 6,048 96 Venezuela 2,310 125 Cambodia 847
10 Netherlands 55,380 39 Estonia 19,717 68 Montenegro 5,896 97 Georgia 2,191 126 Cameroon 836
11 United States 53,820 40 Oman 17,731 69 Bosnia and Herzegovina 5,746 98 India 2,185 127 Tanzania 834
12 Japan 53,306 41 Lithuania 17,685 70 Argentina 5,418 99 Philippines 1,952 128 Senegal 824
13 Sweden 51,942 42 Chile 16,688 71 Peru 5,326 100 Bhutan 1,947 129 Chad 796
14 Austria 50,150 43 Poland 16,461 72 Colombia 4,868 101 Guatemala 1,936 130 Uganda 747
15 Belgium 49,447 44 Latvia 16,132 73 Jamaica 4,517 102 Vietnam 1,920 131 Gambia 707
16 Finland 48,515 45 Croatia 15,846 74 Indonesia 4,323 103 Libya 1,784 132 Kyrgyzstan 675
17 Germany 48,104 46 Russia 15,217 75 Macedonia 4,314 104 Jordan 1,748 133 Yemen 666
18 Canada 47,558 47 Hungary 13,975 76 Mongolia 4,246 105 Honduras 1,691 134 Ethiopia 663
19 United Kingdom 45,812 48 Turkey 13,816 77 Ecuador 4,217 106 Ivory Coast 1,655 135 South Sudan 662
20 France 44,956 49 Equatorial Guinea 12,049 78 Iraq 4,055 107 Zambia 1,634 136 Mozambique 620
21 Hong Kong 43,986 50 Malaysia 11,767 79 Timor-Leste 4,023 108 Nicaragua 1,622 137 Malawi 474
22 Italy 35,294 51 Costa Rica 11,397 80 Tunisia 3,989 109 Myanmar 1,602 138 Burkina Faso 437
23 Israel 34,841 52 Romania 11,346 81 Gabon 3,719 110 Ghana 1,562 139 Mali 433
24 United Arab Emirates 33,829 53 Mexico 10,990 82 Belize 3,632 111 El Salvador 1,504 140 Sierra Leone 433
25 Spain 33,593 54 Panama 10,362 83 Thailand 3,589 112 Bolivia 1,354 141 Nepal 407
26 New Zealand 31,830 55 China 9,771 84 Morocco 3,393 113 Republic of the Congo 1,333 142 Afghanistan 344
27 Brunei Darussalam 31,744 56 Lebanon 9,576 85 Egypt 3,315 114 Sudan 1,329 143 Congo (Dem Rep)3 280
28 Kuwait 30,830 57 Kazakhstan 8,772 86 Namibia 3,228 115 Uzbekistan 1,291 144 Tajikistan 261
29 Malta 28,684 58 Bulgaria 8,688 87 Iran 3,132 116 Kenya 1,288 145 Niger 228
1: See glossary for definitions 2: Constant US$, see glossary for definition of current and constant US$ 3: Democratic Republic of the Congo
Note: data compared only for the 150 countries from the Statista Country Reports publication series. No data available for following counties:
Cuba, North Korea, Somalia and Syria
Services accounted for 50% of GDP in 2017
Economic conditions: value added by sector
Value added1 by sector in % of GDP

Other Services Industry Agriculture
9.0% 7.7% 6.0%

6.0% 7.0% 8.0%
10.0%
15.0% 26.4%
20.0%
24.8% 25.2%
50.4% 50.4% 50.0%

80.0%
75.0%
70.0%
15.8% 16.7% 17.6%
2011 2014 2017
1: See glossary for definitions

16 Source: World Bank World Development Indicators 2018
Inflation decreased from 2017 to 2018 and central
bank interest rates rose
Economic conditions: inflation and interest rates
Inflation1 and central bank interest rates2 in %

Inflation Central bank interest rates
17.8%
12.4%
11.5% 11.1% 11.3%
10.0% 9.5% 9.5%
8.0%
9.8%
6.0%
8.1% 7.7%
7.3% 4.5% 4.0% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5%
6.1%
2.1%
1.4% 1.1%
3.1% 3.0% 3.0% 3.0% 3.0%
2.1% 2.3%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
When interest rates are low, individuals and businesses tend to take more loans. Each bank loan increases the money supply in a fractional reserve
banking system. According to the quantity theory of money, a growing money supply increases inflation. Thus, a lower interest rate tends to result in a
higher inflation. High interest rates tend to lower inflation. Consumers tend to save when interest rates are higher, as returns from savings are higher.
More money put aside to savings means less disposable income. This results in slower economy and decreased inflation.
Forecasts for interest rates are based on latest historical value in a no-change model3. Inflation levels are estimated after 2016 by the IMF.
1: Percent change in annual average consumer prices 2: Monetary policy-related interest rate, percent per annum 3: As central bank interest
rate changes are highly dependent on macro economic developments we assume a constant development
Source: International Monetary Fund, World Economic Outlook Database 2018, International Monetary Fund International Financial Statistics
17 Database 2018
Serbia had a fiscal deficit of -1.5% of GDP in 2017
Public finance: expenditure and revenue (1/2)
Expenses1 and revenues1 in % of GDP

Expense Revenue -4.0%
38.0% 38.0% 38.0%
36.7% 36.5% 36.5%
2009 2013 2017

Household consumption expenditure in Serbia was
lower than in overall Europe & Central Asia in 2017
Public finance: expenditure and revenue (2/2)
Expenditure in % of GDP in 2017

Serbia Europe & Central Asia
70.8%
55.2%
50.5%
43.8%
19.4% 19.6% 21.7%

16.2%
1.8% 0.6%
-1.8% -0.6%
-40.2%
-57.1%
Household General government Gross capital Changes in Exports of goods Imports of goods Other
consumption final consumption formation3 inventories4 and services and services
expenditure1 expenditure2
1: Expenditure by resident households and non-profit institutions serving households on individual consumption goods and services
2: Expenditure on individual consumption goods and services and collective consumption services 3: Including acquisitions less disposals of
valuables 4: Value of entries into inventories less value of withdrawals and value of any recurrent losses of goods held in inventories
19 Source: United Nations National Accounts Estimates of Main Aggregates 2018
Debt-to-GDP ratio in Serbia expected to increase over
the observed time period
Public finances: debt
General government gross debt1 in % of GDP

76.0%
71.9% 73.1%
62.5% 58.8%
61.1% 59.8% 57.2%
57.9% 59.0% 59.6% 57.9%
54.9%
57.1% 55.9% 55.8%
52.7% 53.1% 54.5% 52.9% 51.5%
49.7% 50.1% 50.3%
46.0% 46.6% 47.4%
43.7% 44.7%
36.0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
International Monetary Fund estimate
1: See glossary for definitions 2: Statista estimate

Note: Regional averages based on countries included in Statista Country Reports
Serbia received less development aid in 2016 than in
2006
Public finances: development assistance received
Net official development assistance1 received in % of gross capital formation

-58.0%
20.6%
14.8%
12.7%
9.7%
9.1% 8.7%
7.2% 7.5%
6.5%
4.7% 4.5%
0.2% 0.1% 0.1% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Total labor force to grow from 2018 to 3.7 million by
2023 compared to 2016
Labor force: development
Total labor force1 in thousand

Female Male
4,010 3,964 3,930
3,894 3,813 3,866 3,877 3,837 3,896 3,864 3,833
3,800 3,791 3,799 3,766 3,736 -6.8%
2,261 2,188 2,182 2,212 2,192 2,172 2,154

2,147 2,151 2,163 2,184 2,159 2,136 2,116 2,097 2,080
1,749 1,706 1,653 1,640 1,650 1,682 1,695 1,678 1,752 1,738 1,724 1,710 1,697 1,683 1,669 1,656
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
International Labour Organization estimate

22 Source: ILO Labour force by sex and age ILO modelled estimates 2018
In 2020, most employees work in the services sector
and have a upper secondary education
Labor force: employment
Employment in % of total labor force Educational attainment of population over 15 in 2020

Services Industry Agriculture Incomplete
primary
No education
110 Primary
0.7%
100 0.9% Post
5.0% secondary3
90
14.6%
80
70
60
50
40 59.1% 19.8%
30
Upper
Lower
20 secondary2
secondary1
10
0
2022
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
1: Generally prepares students for a direct entry into working life or for upper secondary education 2: Corresponds to the final stage of
secondary education and prepares the students for a working life or tertiary education
3: Includes programs that serve to broaden the knowledge of students who have already gained an upper secondary education
23 Source: ILO Employment by sector 2018, Wittgenstein Centre for Demography and Global Human Capital 2018
Unemployment rate was 14.1% in 2017 and has been
decreasing since 2010
Labor force: unemployment
Unemployment1 in % of total population Unemployment1 in % of total population

Serbia Europe & Central Asia Male Female
24.0%
23.0%
22.1%
19.2% 19.2%
19.0%
17.9%
17.1%
15.3% 16.1%
14.1% 14.6% 15.0%
13.4%
9.0% 8.8% 9.0% 9.2% 8.9% 8.6% 8.1%

7.5%
2010 2011 2012 2013 2014 2015 2016 2017 2015 2016 2017

It takes 5.5 days to start a business in Serbia
compared to 5.6 days in the U.S.
Business environment: administrative framework
Business administration
Time needed Time needed Time needed to fulfill Time needed to resolve
to start a business1 to register property tax requirements insolvency2
Serbia 5.5 days 21 days 225.5 hours 2.0 years
The U.S. 5.6 days 15.2 days 175 hours 1.0 years
Delivery
Time needed Time needed Efficiency of

to export3 to import3 customs clearance4
Serbia 12 days 15 days 2.4
The U.S. 6 days 5.4 days 3.7
1: Number of calendar days needed to complete the procedures to legally operate a business 2: Number of years from the filing for insolvency
in court until the resolution of distressed assets 3: Time necessary to comply with all the procedures required to export/import goods in
calendar days 4: Includes e.g. speed, simplicity, and predictability of customs clearance (5 = high efficiency, 1 = low efficiency)
Serbia takes 65th place in competitiveness
Business environment: competitiveness
Percentile rankings in Global Competitiveness 4.0 Index in 2018 ▪ Serbia ranked 65th out of 140 countries in
national competitiveness
0%-20% 21%-40% 41%-60% 61%-80% 81%-100%
▪ Percentile rank indicates the country’s place
in the ranking, with 0 corresponding to
lowest rank, and 100 to highest rank
▪ The Global Competitiveness Index 4.0

includes 98 indicators of infrastructure, ITC
adoption, Macroeconomic stability,
efficiency enhancers and innovation factors
that determine the level of competitiveness
of a country
▪ Competitiveness is a set of institutions,

policies, and factors that determine the
level of productivity of an economy
▪ Highly competitive economies are more
productive and have higher chances of
long-term prosperity than less competitive
economies
26 Source: World Economic Forum The Global Competitiveness Index 4.0 2018
Serbia experiences a growth in the emergence of new
businesses
Business environment: business formation
New businesses registered per 1,000 inhabitants1 Ease of doing business score² in 2018
Serbia Europe & Central Asia Starting a business Enforcing contracts Getting credit
5.4 92.6 90.0

5.2
4.9
65.0 65.7 68.7

61.4
1.7 1.6 1.8
2012 2014 2016 Serbia Europe & Central Asia
1: Number of new limited liability corporations registered in the calendar year per 1,000 people between 15-64 years
2: 0 = lowest performance, 100 = best performance
Note: Regional averages for new businesses based on available data for countries covered by Statista Country Reports
27 Source: World Bank Enterprise Surveys 2018, World Bank Doing Business 2018
TRADE &
INVESTMENT
▪ Merchandise trade
▪ Commercial services
▪ Investments
28
Serbia registered a higher export trade flow than
Germany in 2017
Merchandise trade: global comparison (1/2)
Export trade flows of total merchandise1 Import trade flows of total merchandise1
Serbia Europe & Central Asia Germany United States
2010 = 100% 2010 = 100%
175 175
170 170
165 165
160 160
155 155
150 150
145 145
140 140
135 135
130 130
125 125
120 120
115 115
110 110
105 105
100 100
95 95
90 90
2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017

Note: Regional average value refers to the 150 countries covered by the Statista Country Reports
29 Source: WTO International Trade by Commodity and Commercial Services 2018
The share of manufacturers in merchandise export in
Serbia is lower than in Germany in 2017
Merchandise trade: global comparison (2/2)
Shares in merchandise trade export value in 2017 Shares in merchandise trade import value in 2017
87%
78%
76%
74% 73% 72%
69%
61%
19%
16%
12% 12% 13% 12%
11% 11% 11% 11% 10%
9% 9%
7% 7%
5%
Manufacturers Fuels & Mining Agricultural products Manufacturers Fuels & Mining Agricultural products
Note: Regional average value refers to the 150 countries covered by the Statista Country Reports. Tajikistan, Turkmenistan and Uzbekistan
excluded from the regional average due to unavailability of data
With US$11.8 billion, manufacturers accounted for
69% of the total merchandise export value in 2017
Merchandise trade: trade flows
Merchandise export trade flows in billion US$1 Merchandise import trade flows in billion US$1
Manufacturers Fuels & Mining Agricultural products Other
+4.0%²
3.0
1.3 2.2
1.4
1.2 1.9 2.0
+8.2%² 1.6 1.9 1.2 2.9
0.5 1.8
2.8 3.9 1.8
0.2 0.4 3.3 1.6 3.6
0.2 4.9 3.7
4.1 3.0
2.9 3.2 0.3 3.3 1.3 2.6
1.5
0.4 0.2 3.0
1.7 1.4 1.1 4.0
0.2 2.7 2.8 1.1
2.4
1.7 1.4
1.5 13.4 12.8 13.4
11.8 11.9 11.8 11.9 11.8
9.8 10.1 9.0 10.1
8.7
7.0 6.9
5.8
2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017
1: Current US$, see glossary for differences between current and constant US$ 2: CAGR: Compound Annual Growth Rate / average growth rate
per year
Serbia registered a higher export trade flow than
Germany in 2017
Commercial services: global comparison (1/2)
Export trade flows of total commercial services1 Import trade flows of total commercial services1
2010 = 100% 2010 = 100%
170 170
165 165
160 160
155 155
150 150
145 145
140 140
135 135
130 130
125 125
120 120
115 115
110 110
105 105
100 100
95 95
90 90
2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017

Note: Regional average value refers to the 150 countries covered by the Statista Country Reports. Turkmenistan excluded from the regional
average due to unavailability of data
The share of travel in services export is higher in
Serbia than in Germany in 2017
Commercial services: global comparison (2/2)
Shares in commercial services export value in 2017 Shares in commercial services import value in 2017
Serbia Europe & Central Asia1 Germany United States
29%
27% 26% 26% 26%
23% 23%
21% 21% 20%
20%
18% 19%
16%
13%
11%
6%
5% 5%
4% 3% 3%
2% 2%
Goods-related services Transport Travel Goods-related services Transport Travel
Note: Regional average value refers to the 150 countries covered by the Statista Country Reports. Turkmenistan and Uzbekistan excluded from
the regional average due to unavailability of data
With US$1.4 billion, travel services accounted for 24%
of total services export in 2017
Commercial services: trade flows
Commercial services export trade flows in billion US$1 Commercial services import trade flows in billion US$1
Travel Transport Goods-related services Other
+7.8%²
+4.9%²
2.9
2.4 2.4 2.1

2.1 2.3
1.9
2.0 1.7 1.8 1.7
1.9 1.6 1.7
0.4 1.5
1.7 0.1
0.3 0.3 0.1
0.3 0.3 0.1 0.1 0.1 0.1
0.3 0.2 1.3 0.1 0.1 1.3
0.2 1.2 1.2 1.1 1.1 1.2 1.1 1.1
1.1 1.1 1.0
1.0 0.9 1.0
0.8
1.1 1.2 1.4 1.1 1.1 1.2 1.1 1.2 1.4

0.8 1.0 0.9 1.1 1.1 1.0 1.0
2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017
1: Current US$, see glossary for differences between current and constant US$ 2: CAGR: Compound Annual Growth Rate / average growth rate
per year
With US$275.4 billion, the United States registered
the highest inward FDI flow in 2017
Investments: global comparison (1/2)
Top global inward FDI1 flows in billion US$2 in 2017
North United States 275.4

America Canada 24.2
Netherlands 58.0
France 49.8
Europe Switzerland 41.0
& Central Asia Germany 34.7
China 136.3
Hong Kong 104.3
East Asia Singapore 62.0
& Pacific Australia 46.4
India 39.9
South Asia Pakistan 2.8
Bangladesh 2.2
Brazil 62.7
Latin America Mexico 29.7
& Caribbean Colombia 14.5
Israel 19.0
Middle East & UAE3 10.4
North Africa Egypt 7.4
Ethiopia 3.6
Sub-Saharan Nigeria 3.5
Africa Ghana 3.3
1: Foreign direct investment, see glossary for definition 2: Current US$, see glossary for differences between current and constant US$ 3: United
Arab Emirates
Note: Regions only include the 150 countries covered by the Statista Country Reports
35 Source: UNCTAD Foreign Direct Investment Inward and Outward flows and stock 2018
The United States also had the highest outward FDI
sum in 2017, with US$342.3 billion
Investments: global comparison (2/2)
Top global outward FDI1 flows in billion US$2 in 2017
North United States 342.3

America Canada 77.0
United Kingdom 99.6
Germany 82.3
Europe France 58.1
& Central Asia Luxembourg 41.2
Japan 160.4
China 124.6
East Asia Hong Kong 82.8
& Pacific South Korea 31.7
India 11.3
South Asia Bangladesh 0.2
Pakistan 0.1
Chile 5.1
Latin America Mexico 5.1
& Caribbean Colombia 3.7
UAE3 14.0
Middle East & Kuwait 8.1
North Africa Israel 6.3
South Africa 7.4
Sub-Saharan Angola 1.6
Africa Nigeria 1.3
1: Foreign direct investment, see glossary for definition 2: Current US$, see glossary for differences between current and constant US$ 3: United
Arab Emirates
Inward FDI amounted to $3.2 billion in 2017
Investments: development
FDI1 inward and outward flows in billion US$2

Inward flows Outward flows
5.47
3.19
2.69 2.59
2.43
2.17 2.20
1.59
0.33 0.35 0.37 0.39 0.39 0.30

0.24 0.19
2010 2011 2012 2013 2014 2015 2016 2017
1: Foreign direct investment, see glossary for definition 2: Current US$, see glossary for differences between current and constant US$ Note: FDI
flows with a negative sign indicate that at least one of the three components of FDI (equity capital, reinvested earnings or intra-company loans) is
negative and not offset by positive amounts of the remaining components. These are instances of reverse investment or disinvestment.
FITCH
SOLUTIONS
RISK INDICES
▪ Methodology
▪ Development
▪ High and low performer
▪ Global and regional comparison
38
Operational risk breakdown
Methodology
The risk/reward indices by Fitch Solutions are a comparative regional

ranking system that classifies different markets by the ease of doing Operation risk index
business there and operational risks and limitations that potential
investors face. The operational risk index uses quantitative measures to (100%)
compare the challenges of operating in 201 countries worldwide. The
index attributes scores between 0-100 to each country, with 100 being
the lowest risk.
The index focuses on four main risk areas: Labor market Logistics Trade & investment Crime & security
(25%) (25%) (25%) (25%)
▪ Labor market: evaluation of the risks surrounding the size, education
levels and costs of employing workers in a country
▪ Logistics: evaluation of the quality and extent of the transport Economic

Education Transport network Conflict risk
infrastructure, the ease of trading, and the quality and availability of openness
utilities
▪ Trade & investment: evaluation of the openness of an economy, the Trade procedures Vulnerability
Availability of labor Legal
level of government intervention and the quality and efficacy of the and governance to crime
legal environment
▪ Crime & security: evaluation of operating conditions with respect to Market size Government
interstate conflict risk, terrorism, crime, including cybercrime and Labor costs Business crime
and utilities intervention
organized crime
Note: THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS MACRO RESEARCH and is NOT a comment on Fitch Ratings' credit ratings. Any comments
or data included in the report are solely derived from Fitch Solutions Macro Research and independent sources. Fitch Ratings' analysts do not share data
39 or information with Fitch Solutions Macro Research.
Overall index score increased in 2019, which means
that the operational risk for Serbia decreased
Development
Development of overall operational risk index1 Development of subindices1

Labor market Trade & investment
Logistics Crime & security
55.8 56.8 57.2 60.4 61.0 59.4 60.7

52.8
56.6 58.5 57.0
52.5 56.9 58.5
53.9
51.3
51.6 52.5 52.5
46.8
2016 2017 2018 2019 2016 2017 2018 2019
or information with Fitch Solutions Macro Research.
1: Scale of 0-100, with 100 being the lowest risk
40 Source: Fitch Solutions
In the “labor market” area, Serbia is 18.0 points
behind the regional high performer
High and low performer
Comparison of country and territory scores to highest and lowest scores 1 in the region and worldwide in 2019
Labor market Logistics Trade & investment Crime & security
Serbia 58.5 Serbia 57.0 Serbia 60.7 Serbia 52.5
Switzerland 76.5 Netherlands 88.6 United Kingdom 78.8 Norway 92.3

Regional
high/low
Turkmenistan 33.8 Uzbekistan 34.7 Tajikistan 38.9 Ukraine 30.5
United States 79.0 Netherlands 88.6 Hong Kong (SAR) 88.7 Norway 92.3
Global
high/low
Sierra Leone 25.4 South Sudan 16.9 Chad 18.9 South Sudan 4.5
Serbia had the 55th lowest operational risk in 2019
Global comparison
Operational risk index1 in 2019 and change compared to 2018

# Country/Territory Value Change # Country/Territory Value Change # Country/Territory Value Change # Country/Territory Value Change # Country/Territory Value Change
1 Singapore 82.8 → 31 Malaysia 67.9 → 61 Kuwait 55.1 → 91 Suriname 44.1 ↑ 121 Bolivia 35.3 →
2 Hong Kong (SAR) 81.7 → 32 Latvia 65.8 → 62 Turkey 54.8 ↑ 92 Philippines 44.0 ↑ 122 Djibouti 35.2 →
3 Denmark 81.0 → 33 Malta 65.6 → 63 Uruguay 54.3 → 93 Lebanon 43.9 → 123 Ethiopia 35.0 →
4 Switzerland 80.2 → 34 Italy 64.7 ↑ 64 Vietnam 54.0 → 94 Belize 42.7 → 124 Pakistan 34.9 →
5 Netherlands 79.9 → 35 Qatar 64.6 → 65 Panama 53.9 ↓ 94 Iran 42.7 → 125 Burkina Faso 34.3 →
6 Sweden 79.2 → 36 Israel 64.4 → 66 Costa Rica 53.2 → 96 Uzbekistan 42.3 ↑ 126 Mozambique 33.8 →
7 United Kingdom 77.7 → 37 Chile 64.3 → 67 Morocco 52.6 → 96 Tajikistan 42.3 ↓ 127 Myanmar 33.1 ↑
8 New Zealand 77.5 → 38 Croatia 64.1 → 68 Indonesia 52.5 → 96 Kyrgyzstan 42.3 → 128 Zimbabwe 32.3 →
9 Canada 77.4 ↑ 39 Hungary 64.0 → 69 Mongolia 51.7 → 99 Cambodia 41.9 ↓ 129 Gabon 32.1 ↓
10 Norway 77.0 → 40 Slovakia 63.3 → 70 Mexico 51.3 → 99 Cuba 41.9 → 129 North Korea 32.1 ↓
11 United States 76.9 → 41 Bahrain 63.2 → 71 South Africa 51.2 → 101 Kenya 41.7 → 131 Angola 31.1 →
12 Finland 75.4 → 42 Oman 62.8 → 71 Albania 51.2 → 102 El Salvador 41.5 → 132 Venezuela 30.8 ↑
13 Austria 74.8 → 43 Romania 62.4 → 73 India 50.7 ↑ 103 Algeria 41.0 → 133 Iraq 30.1 →
14 Luxembourg 74.7 → 44 Cyprus 62.3 ↑ 74 Bhutan 50.6 ↓ 104 Paraguay 39.7 → 133 Timor-Leste 30.1 →
15 Ireland 74.3 → 44 Brunei Darussalam 62.3 ↑ 74 Botswana 50.6 → 105 Zambia 39.5 → 135 Cameroon 29.6 ↓
16 Japan 74.2 → 46 Georgia 61.9 → 76 Rwanda 49.6 ↓ 106 Nicaragua 39.1 → 136 Rep. of the Congo 29.3 ↓
17 Germany 73.8 → 47 Saudi Arabia 61.7 → 77 Peru 48.8 → 107 Bangladesh 38.4 → 137 Libya 29.2 →
18 Australia 73.2 → 48 Bulgaria 60.2 → 78 Colombia 48.4 ↓ 108 Guatemala 38.1 → 138 Equatorial Guinea 27.8 ↓
19 Spain 72.5 → 49 Thailand 59.4 ↑ 79 Argentina 47.8 ↑ 108 Turkmenistan 38.1 → 139 Sierra Leone 27.5 ↓
19 France 72.5 → 50 Azerbaijan 58.8 ↑ 79 Tunisia 47.8 → 110 Gambia 37.6 → 140 Mali 27.4 ↓
21 South Korea 72.0 ↑ 51 Greece 58.6 → 81 Brazil 47.4 ↑ 111 Nepal 37.5 ↓ 141 Syria 27.1 →
22 Belgium 71.6 ↓ 51 Jordan 58.6 → 82 Jamaica 47.2 → 111 Ivory Coast 37.5 → 142 Niger 26.6 →
23 Estonia 71.1 → 53 Kazakhstan 58.5 ↑ 82 Namibia 47.2 ↓ 113 Laos 37.4 ↓ 143 Sudan 26.5 ↑
24 UAE 71.0 → 54 China (Mainland) 58.1 ↑ 84 Moldova 46.6 → 114 Honduras 37.3 → 144 Haiti 25.0 →
25 Czechia 70.9 → 55 Serbia 57.2 → 84 Bosnia and Herzeg. 46.6 ↑ 115 Guyana 36.7 ↓ 145 Congo (Dem. Rep)2 24.5 →
25 Iceland 70.9 → 56 Belarus 57.1 → 86 Ukraine 46.5 ↑ 116 Tanzania 36.3 ↓ 145 Afghanistan 24.5 ↑
27 Portugal 70.8 → 57 Montenegro 56.7 → 87 Ecuador 45.8 → 117 Nigeria 36.2 → 147 Yemen 23.7 →
28 Poland 69.6 → 58 Russia 56.5 ↑ 87 Ghana 45.8 ↓ 118 Senegal 36.0 ↓ 148 Somalia 22.5 ↓
29 Slovenia 68.6 ↑ 59 Macedonia 56.2 ↓ 89 Egypt 45.2 → 118 Malawi 36.0 → 149 Chad 20.2 →
30 Lithuania 68.4 → 60 Armenia 55.5 → 90 Dominican Republic 44.4 → 120 Uganda 35.8 → 150 South Sudan 18.8 ↓
1: Scale of 0-100, with 100 being the lowest risk 2: Democratic Republic of the Congo
With an index score of 57.2, the operational risk in
Serbia is relatively low
Regional comparison
Operational risk index1 worldwide and in Europe & Central Asia in 2019
0-25 26-50 51-75 76-100
▪ In 2019, Serbia ranks #55 in the Fitch operational index score out of 150 countries and territories covered by the Statista Country Reports.
▪ It comes #35 when compared to the other 49 countries and territories in the region Europe & Central Asia.
SOCIETY
▪ Population
▪ Human Development Index
44
Population projected to reach 7.1 million by 2058
Population (1/4)
Population projection1 in thousand
8,762 8,609 8,433

8,231
8,007
7,771 -19.0%
7,538
7,314
7,095
2018 2023 2028 2033 2038 2043 2048 2053 2058
1: The medium fertility variant assumes that total fertility will eventually converge toward a level of 1.85 children per woman
45 Source: United Nations, Department of Economic and Social Affairs, Population Division 2017
59.8% of the population were between the age 20
and 64, more than half of them were women
Population (2/4)
Population distribution in 2018

Male Age group Female
1.4% 80+ 2.5%
1.1% 75-79 1.6%
2.0% 70-74 2.5%
3.1% 65-69 3.6%
3.2% 60-64 3.6%
3.0% 55-59 3.3%
3.1% 50-54 3.2%
3.3% 45-49 3.4%
3.5% 40-44 3.5%
3.4% 35-39 3.4%
3.5% 30-34 3.4%
3.5% 25-29 3.3%
3.2% 20-24 3.0%
Σ 29.8% 3.1% 15-19 2.9% Σ 30.0%
2.9% 10-14 2.8%
2.7% 5-9 2.6%
2.7% 0-4 2.6%
Reading support: 3.5% of the population is female and between the age of 40 and 44.
Population decreased by 0.3%, which is below
regional average, to a total of 8,762,027 in 2018
Population (3/4)
Population growth, total population, and real GDP1 per capita in US$2 in Eastern Europe3 and Central Asia in 2018
Population growth 2017-2018 in % Regional average Real GDP per capita: US$2,500
2.5
Turkmenistan Tajikistan Turkey

2.0
Kyrgyzstan
Uzbekistan
1.5 Macedonia
Kazakhstan
Armenia
1.0 Bosnia and Azerbaijan
Montenegro Herzegovina Eastern Europe
& Central Asia Russia
0.5
Georgia
0.0
Belarus
Serbia Ukraine
Albania
-0.5 Romania
Moldova Croatia Bulgaria
Hungary
-1.0
0 5 10 15 20 35 40 45 145
Total population in millions
1: See glossary for definitions 2: Constant US$, see glossary for definition of current and constant US$ 3: Countries with a GDP per capita higher
than US$16,000 are excluded
Source: United Nations, Department of Economic and Social Affairs, Population Division 2017, International Monetary Fund, World Economic
47 Outlook Database 2018, Statista 2018
Serbia had the 97th highest total population in the
world in 2018
Population (4/4)
Total population in millions in 20181

# Country Population # Country Population # Country Population # Country Population # Country Population
1 China 1,415.0 31 Argentina 44.7 64 Syria 18.3 97 Serbia 8.8 135 Bosnia and Herzeg. 3.5
2 India 1,354.1 32 Uganda 44.3 65 Chile 18.2 98 Austria 8.8 136 Uruguay 3.5
3 United States 326.8 33 Ukraine 44.0 66 Zambia 17.6 99 Switzerland 8.5 137 Mongolia 3.1
4 Indonesia 266.8 34 Algeria 42.0 67 Guatemala 17.2 100 Israel 8.5 138 Albania 2.9
5 Brazil 210.9 35 Sudan 41.5 68 Netherlands 17.1 103 Sierra Leone 7.7 139 Armenia 2.9
6 Pakistan 200.8 36 Iraq 39.3 69 Zimbabwe 16.9 104 Hong Kong 7.4 140 Jamaica 2.9
7 Nigeria 195.9 37 Poland 38.1 70 Ecuador 16.9 105 Bulgaria 7.0 141 Lithuania 2.9
8 Bangladesh 166.4 38 Canada 37.0 71 Senegal 16.3 106 Laos 7.0 142 Qatar 2.7
9 Russia 144.0 39 Afghanistan 36.4 72 Cambodia 16.2 107 Paraguay 6.9 143 Namibia 2.6
10 Mexico 130.8 40 Morocco 36.2 73 Chad 15.4 108 Libya 6.5 144 Botswana 2.3
11 Japan 127.2 41 Saudi Arabia 33.6 74 Somalia 15.2 109 El Salvador 6.4 146 Gambia 2.2
12 Ethiopia 107.5 42 Peru 32.6 76 South Sudan 12.9 110 Nicaragua 6.3 147 Macedonia 2.1
13 Philippines 106.5 43 Venezuela 32.4 77 Rwanda 12.5 111 Kyrgyzstan 6.1 148 Slovenia 2.1
14 Egypt 99.4 44 Uzbekistan 32.4 78 Tunisia 11.7 112 Lebanon 6.1 149 Gabon 2.1
15 Vietnam 96.5 45 Malaysia 32.0 79 Belgium 11.5 113 Turkmenistan 5.9 150 Latvia 1.9
16 Congo (Dem Rep.)2 84.0 46 Angola 30.8 80 Cuba 11.5 114 Singapore 5.8 152 Bahrain 1.6
17 Germany 82.3 47 Mozambique 30.5 83 Bolivia 11.2 115 Denmark 5.8 155 Timor-Leste 1.3
18 Iran 82.0 48 Nepal 29.6 84 Greece 11.1 116 Finland 5.5 156 Equatorial Guinea 1.3
19 Turkey 81.9 49 Ghana 29.5 85 Haiti 11.1 117 Slovakia 5.4 157 Estonia 1.3
20 Thailand 69.2 50 Yemen 28.9 86 Dominican Republic 10.9 118 Republic of the Congo 5.4 159 Cyprus 1.2
21 United Kingdom 66.6 52 North Korea 25.6 87 Czechia 10.6 119 Norway 5.4 160 Djibouti 1.0
22 France 65.2 53 Ivory Coast 24.9 88 Portugal 10.3 122 Costa Rica 5.0 164 Bhutan 0.8
23 Italy 59.3 54 Australia 24.8 89 Sweden 10.0 124 Oman 4.8 165 Guyana 0.8
24 Tanzania 59.1 55 Cameroon 24.7 90 Azerbaijan 9.9 125 Ireland 4.8 167 Montenegro 0.6
25 South Africa 57.4 57 Niger 22.3 91 Jordan 9.9 126 New Zealand 4.7 169 Luxembourg 0.6
26 Myanmar 53.9 59 Burkina Faso 19.8 92 Hungary 9.7 129 Kuwait 4.2 170 Suriname 0.6
27 South Korea 51.2 60 Romania 19.6 93 United Arab Emirates 9.5 130 Croatia 4.2 175 Brunei Darussalam 0.4
28 Kenya 51.0 61 Malawi 19.2 94 Belarus 9.5 131 Panama 4.2 176 Malta 0.4
29 Colombia 49.5 62 Mali 19.1 95 Honduras 9.4 132 Moldova 4.0 179 Belize 0.4
30 Spain 46.4 63 Kazakhstan 18.4 96 Tajikistan 9.1 133 Georgia 3.9 180 Iceland 0.3
1: Countries not included in the Statista Country Reports are omitted in this table 2: Democratic Republic of the Congo
In global comparison, Serbia has a high level of
human development
Human Development Index
Human Development Index in 2017 ▪ With 78.7%, Serbia ranks #67 in comparison
of 189 countries.
0%-54% 55%-69% 70%-79% 80%-100%
▪ The Human Development Index was
created to emphasize that people and their
capabilities should be the ultimate criteria
for assessing the development of a country,
not economic growth alone
▪ The index is a summary measure of average

achievement in key dimensions of human
development: a long and healthy life, being
knowledgeable and having a decent
standard of living
49 Source: United Nations Development Programme Human Development Report 2018

RETAIL &
CONSUMPTION
▪ Consumption
▪ Consumer behavior
▪ eCommerce
▪ FinTech
50
The retail market in Serbia is maturing
Retail structure (1/4)
Development stages of retail markets
Opening Maturing Well-developed
▪ Global grocery chains are not present ▪ Global grocery chains start operations in large ▪ Global chains operate in large cities, medium-
cities1 sized cities and rural areas1
▪ National store ownership characterized by
handcart or independent stores ▪ Store ownership is characterized by ▪ Store ownership is characterized by independent
independent stores, national or international stores and national or international chains
▪ Traditional1 payment methods are chains
primarily used ▪ Traditional, electronic and mobile payment
▪ Traditional and electronic payment methods1 methods1 are commonly used
are commonly used
Note: Please refer to the appendix for further information on the methodology
In Serbia, global grocery chains are represented in
rural areas as well as in medium-sized and large cities
Presence of international grocery chains
International grocery chains Store location International grocery chains Store location
 
 
 
 
medium-sized and large cities1


Note: Grocery chains are sorted by number of operated stores internationally, information based on Statista Fact Check
52 Source: World List Mania 2018, Statista 2019
Characteristics of the grocery market in Serbia
XXX Existence of grocery store types1
Hypermarkets Convenience Discounter Handcart
   
XXXX Store ownership
International chains National chains Independent stores
  
XXXX Payment methods
Cash Cheques Debit card Credit card Smartphone Other
     
Note: Information based on Statista Fact Check
Insights into the grocery structure and shopping
behavior in Serbia
Insights into a national typic grocery structure
The grocery structure in Serbia is characterized by hypermarkets, convenience stores, discounters and handcarts.
Many people in Serbia still like to buy their groceries in mall chains rather than in large international stores. Consumers often buy food on their payday,
which is usually around the 15th of each month.
Hypermarkets and supermarkets have been of growing interest in the past due to special offers and discounts. Nonetheless, many consumers still
prefer to shop at nearby local and independent stores for their daily needs.

Households in Serbia spend their biggest share of
their income on food and non-alcoholic beverages
Consumption
Household consumption in 2016

Serbia Europe
25.9%
22.1%
21.0%
16.9%
12.1% 12.4%
8.5% 9.4%
7.9% 7.3%
6.8% 6.2%
5.1% 5.0% 5.4% 4.7%
3.3% 3.9% 4.1% 4.2% 3.1% 2.4%
1.3% 1.2%
Food and Alcoholic Clothing Housing House Health Transport Communi- Recreation Education Restaurants Other2
non- beverages, and and maintenance cations and culture and hotels
alcoholic tobacco and footwear utilities1
beverages narcotics
Household consumption expenditure3 in 2016
US$27.28bn Serbia
1: Also includes furnishing and household equipment expenses 2: Miscellaneous goods and services 3: Current US$, see appendix for
differences between current and constant US$
55 Source: United Nations Statistics Division 2019; United Nations Demographic Statistics Database 2019
With US$429.2m and a share of 49.1%, eTravel
generates the highest digital revenues
Consumer behavior: digital expenditures
Digital expenditures1 as share of consumer spending per capita in 20192 Highlights
10.7%
▪ In Europe, the digital expenditures as a
6.3% share of consumer spending per capita
5.8% reach 5.8% in 2019
4.4%
2.8% 2.9% 2.4% ▪ In Serbia, the revenue in the eCommerce
market amounts to US$362.2m in 2019
▪ The eServices market generates revenues

Africa & Asia Australia Europe Serbia South North of US$46.0m in 2019
Middle East America America
▪ In the eTravel market, 2019 revenues add
Total digital revenues1 in this country and breakdown in 2019 up to US$429.2m
▪ The market for Connected cars produces

a revenue of US$3.5m in 2019
3.9% eCommerce
5.3% ▪ Revenue in the Digital media market
Digital media
0.4% amounts to US$33.7m in 2019
41.4% eServices
US$874.7m
Connected car
49.1% eTravel
1: Including all revenues generated within the eCommerce, eTravel, eServices, Digital media and Connected car markets 2: Regions only include
countries listed in the Digital Market Outlook
56 Source: Statista Digital Market Outlook 2018
Compared to its region, eCommerce penetration is
low and growth is above average
eCommerce: overview (1/2)
eCommerce revenue growth, ARPU1 in US$ and penetration2 in Eastern Europe3 & Central Asia and regions in 2019
eCommerce revenue growth 2018-2019 in % Regional averages ARPU: US$250
28
26
Emerging South Asia Mature
Kyrgyzstan Uzbekistan
24 East Asia
22 & Pacific
Sub-Saharan Africa World
20 Belarus
Kazakhstan
Tajikistan Romania
18 Latin America Moldova North America
Turkmenistan & Caribbean Ukraine
16
14 Montenegro
Serbia Macedonia
12 Russia Hungary
10
Bosnia and Albania
8 Herzegovina
Middle East
2 Eastern Europe 3 Croatia
Bulgaria & Central Asia & North Africa Europe4
0
-2 Georgia Turkey
Azerbaijan
-4 Delayed Armenia Saturated
-6
0 20 30 50 55 60 65 70 75 80
eCommerce penetration in %
1: ARPU = average revenue per user 2: Share of active paying customers from the total population 3: Countries with a GDP per capita higher
than US$16,000 are excluded 4: Countries with a GDP per capita lower than US$16,000 are excluded
Insights into the eCommerce structure in Serbia
eCommerce: overview (2/2)
eCommerce in Serbia XXX Payment methods

In Serbia, there are plenty of eCommerce stores available. More and E-wallet credit direct bank invoice cash other
more people are starting to prefer eCommerce as a way of buying cards debits transfer
things. The food niche is not far developed yet, but the demand is
increasing. Citizens of Serbia prefer to buy from overseas rather than on
the domestic market, which leads to a growing use of online shopping.       
Delivery characteristics in this country
n.a.
Selected online shops in Serbia:
▪ Fashion: Fashion & Friends, Katrin
Selected delivery providers in this country
▪ Electronics & Media: Win Win, Gigatron
▪ DHL
▪ Food & Personal Care: Markator, Maxi
▪ Serbian Post Office
▪ Furniture & Appliances: Emmzeta, Matis
▪ CityExpress
▪ Toys, Hobby & DIY: DexyCo, Beba Kids
▪ BEX

eCommerce revenues are expected to have a positive
annual average growth of 8.9% up to 2023
eCommerce: revenue projection
eCommerce revenues in million US$ Segment CAGR1 2019-2023 Highlights

Toys, hobby & DIY Electronics & media ▪ Revenue in the eCommerce
Furniture & appliances Fashion market amounts to
US$362.2m in 2019
Food & personal care
▪ Revenue is expected to show
8.1% an annual growth (CAGR
509 2019-2023) of 8.9%, resulting
+8.9%1 in a market volume of
97 US$508.7m in 2023
7.6%
▪ The market's largest segment
362 is Electronics & media with a
market volume of US$164.5m
71 in 2019
220 13.3%
▪ User penetration is 57.5% in
2019 and is expected to hit
165 63.1% in 2023
54 10.9%
▪ The average revenue per user
33 (ARPU) amounts to US$89.24
83 in 2019
55
39 54 8.5%
2019 2023
1: CAGR: Compound Annual Growth Rate/ average growth rate per year
Selected online store: Tehnomanija
eCommerce: selected store profile
Launch year: 1999
Company: Tehnomanija d.o.o.
Headquarter: Belgrade
Coverage of eCommerce categories

Food &
Electronics Furniture & Toys, hobbys
Fashion personal
& media appliances & DIY
care
    
Payment methods
Direct Bank
E-Wallets Cards Invoice Cash Other1
debits transfer
      
Logistics providers
n.a.
1: Installments, voucher
Note: Information based on Statista fact check
60 Source: https://www.tehnomanija.rs 2018
The total FinTech transaction value is forecast to grow
by 67.7% from 2019 to 2023
FinTech: transaction projection
FinTech transaction value in million US$ Segment CAGR1 2019-2023 Highlights

Digital payments Alternative lending ▪ The transaction value in the
Personal finance Alternative financing FinTech market amounts to
US$992.9m in 2019
7.1% ▪ The transaction value is

expected to show an annual
1,665 growth (CAGR 2019-2023) of
0 2 13.8%, resulting in a volume of
+13.8%1
US$1,664.8m in 2023
478
12.7% ▪ The largest segment is the
digital payments segment with
a volume of US$861.5m in
993
2019
0 1
130
▪ User penetration in digital
payments is 57.5% in 2017
38.4%
and is expected to hit 63.1%
1,185 in 2023
861 ▪ The average transaction value
per user in digital payments
amounts to US$212.21 in
8.3% 2019
2019 2023
1: CAGR: Compound Annual Growth Rate/ average growth rate per year
INFRA-
STRUCTURE
▪ Digital
▪ Transport
62
77.0% used the internet and there were 102.4 mobile
cellular subscriptions per 100 people
Digital infrastructure (1/2)
Internet penetration1 in 2018 Mobile phone subscriptions1 per Fixed broadband subscriptions1 per
100 inhabitants in 2018 100 inhabitants in 2018
84.1% 124 125 34
79.4%
77.0%
29
102
22
Serbia United States Europe & Serbia United States Europe & Serbia United States Europe &
Central Asia Central Asia Central Asia

63 Source: World Bank World Development Indicators 2018, Statista 2018
Serbia had the 53rd highest internet penetration in
the world in 2018
Digital infrastructure (2/2)
Internet penetration1 in 2018

# Country Penetration # Country Penetration # Country Penetration # Country Penetration # Country Penetration
1 Norway 98.4% 31 Latvia 84.4% 64 Djibouti 69.4% 97 Bolivia 51.0% 135 Yemen 25.2%
2 Denmark 98.3% 32 Slovakia 84.2% 65 Uruguay 68.0% 98 Tunisia 50.9% 136 Mongolia 23.8%
3 Bahrain 98.1% 33 United States 84.1% 66 Jordan 67.9% 99 Cuba 50.1% 137 Laos 23.0%
4 Qatar 97.9% 34 France 83.6% 67 Bulgaria 66.5% 100 Cambodia 50.0% 138 Bangladesh 22.0%
5 United Kingdom 97.1% 35 Cyprus 82.6% 68 Turkey 66.3% 103 Panama 49.3% 139 Mozambique 21.5%
6 Sweden 96.7% 36 Slovenia 81.9% 69 Iran 65.9% 104 Nigeria 47.1% 140 Tajikistan 21.2%
7 Netherlands 95.3% 37 Czechia 81.7% 70 Mexico 65.8% 105 Indonesia 45.4% 141 Rwanda 21.2%
8 Canada 94.7% 38 Argentina 81.6% 71 Brazil 65.6% 106 Ivory Coast 45.3% 142 Uganda 20.4%
9 United Arab Emirates 94.7% 39 Kuwait 81.2% 72 Philippines 65.4% 107 Peru 45.1% 143 Libya 19.6%
10 Luxembourg 94.7% 40 Russia 81.2% 73 Romania 65.2% 108 Jamaica 44.8% 144 Turkmenistan 19.5%
11 New Zealand 94.3% 41 Belarus 81.1% 74 Albania 64.6% 109 Egypt 43.6% 146 Gambia 19.5%
12 South Korea 94.3% 42 Hungary 81.0% 76 Morocco 64.4% 110 Suriname 43.5% 147 Nepal 19.3%
13 Switzerland 94.2% 43 Lithuania 80.6% 77 Italy 63.9% 111 Guatemala 41.4% 148 Ethiopia 19.3%
14 Iceland 94.0% 44 Croatia 80.4% 78 South Africa 63.8% 112 Ghana 40.8% 149 Kenya 18.8%
15 Germany 93.5% 45 Poland 79.5% 79 Colombia 63.7% 113 Cameroon 37.8% 150 Tanzania 16.5%
16 Brunei Darussalam 92.6% 46 Malaysia 79.2% 80 Venezuela 63.5% 114 India 35.7% 152 Pakistan 15.4%
17 Japan 92.5% 47 Oman 78.9% 83 Bhutan 62.8% 115 Namibia 35.4% 155 Angola 15.1%
18 Estonia 91.9% 48 Greece 78.6% 84 Paraguay 62.6% 116 Kyrgyzstan 34.2% 156 Burkina Faso 14.1%
19 Australia 91.5% 49 Portugal 78.5% 85 Ecuador 60.2% 117 Guyana 33.3% 157 Malawi 13.4%
20 Finland 91.4% 50 Malta 78.5% 86 Georgia 59.4% 118 Honduras 32.1% 159 Mali 13.3%
21 Belgium 91.2% 52 Moldova 77.9% 87 Thailand 58.8% 119 El Salvador 31.9% 160 Sierra Leone 12.3%
22 Hong Kong 90.0% 53 Lebanon 77.3% 88 Botswana 58.3% 122 Syria 31.9% 164 Haiti 12.0%
23 Chile 89.4% 54 Serbia 77.0% 89 China 56.9% 124 Myanmar 31.7% 165 Niger 11.7%
24 Singapore 89.0% 55 Armenia 76.7% 90 Vietnam 56.7% 125 Senegal 30.0% 167 Afghanistan 10.6%
25 Ireland 88.6% 57 Costa Rica 74.9% 91 Belize 56.6% 126 Sudan 29.4% 169 Republic of the Congo 8.8%
26 Austria 88.4% 59 Kazakhstan 73.2% 92 Gabon 54.1% 129 Timor-Leste 28.0% 170 Congo (Dem Rep.)2 7.9%
27 Spain 87.2% 60 Macedonia 72.7% 93 Ukraine 53.9% 130 Zambia 27.3% 175 South Sudan 7.8%
28 Azerbaijan 85.4% 61 Dominican Republic 72.1% 94 Uzbekistan 53.6% 131 Equatorial Guinea 27.2% 176 Chad 6.1%
29 Israel 85.3% 62 Montenegro 71.1% 95 Iraq 53.6% 132 Zimbabwe 26.1% 179 Somalia 1.7%
30 Saudi Arabia 84.8% 63 Bosnia and Herzegovina 71.1% 96 Algeria 52.4% 133 Nicaragua 25.9%
1: See glossary for definitions 2: Democratic Republic of the Congo

64 Source: World Bank World Development Indicators 2018, Statista 2018
Quality of trade and transport-related infrastructure
was lower than the regional average
Transport infrastructure
Quality of trade and transport-related infrastructure1 Freight transportation2

n.a.
3.2 3.2 3.2

2.7 7.4 million ton-km in 2017
2.6
2.5
3,086.6 million ton-km in 2016
2012 2014 2016
1: Logistics Performance Index (5 = high performance, 1 = low performance), see glossary for definition 2: Ton-kilometer = cargo weight
transported times distance transported, TEU = Twenty-foot equivalent unit (standard-size container) 3: Container port traffic
POLITICS
▪ Political profile
▪ Political environment
66
Serbia is a newer democracy
Political profile
General information Latest election results:

Serbian National Assembly, 2016
▪ Citizens are considered to be free
▪ Form of government: democracy Serbian Progressive Party Serbian Radical Party other
Socialist Party of Serbia Enough is Enough
▪ Freedom House score in 2018: 2.5 (1 = most free and 7 = least free)
▪ Serbia is characterized as a newer democracy, as the state has less
than thirty five years' experience with democracy and a current 11.6%
Freedom House rating of 1 to 2.5
▪ Chief of state: President Aleksandar VUCIC (since 31 May 2017) 8.8%
▪ Head of government: Prime Minister Ana BRNABIC (since 29 June

2017) 6.4%
52.4%
20.8%
Voter turnout: 54%
67 Source: Political Handbook of the World 2016-2017, CIA World Factbook, ElectionGuide, Freedom House
Rule of Law in Serbia is low in global comparison
Political environment: rule of law
Percentile rankings in rule of law in 2017 ▪ When it comes to the rule of law, Serbia has
ranked #109 in the comparison of the 214
0%-20% 21%-40% 41%-60% 61%-80% 81%-100% countries and territories covered by the
World Bank Worldwide Governance
Indicators in 2017
▪ Percentile rank indicates the country's rank

among all countries covered by the
aggregate indicator, with 0 corresponding
to the lowest, and 100 to the highest rank
▪ Rule of law refers to the influence and

authority of law within society, particularly
as a constraint upon behavior, including
behavior of government officials
▪ This indicator captures perceptions of the

extent to which the country's population
has confidence in reliability of legal
authorities and police and the likelihood of
crime and violence to occur
▪ The rule of law also measures factors such
as the time and cost for resolving a
commercial dispute
68 Source: World Bank Worldwide Governance Indicators 2018

Control of corruption is rated as mediocre
Political environment: corruption control
Efficiency of corruption control1 in 2017

# Country Estimate # Country Estimate # Country Estimate # Country Estimate # Country Estimate
1 New Zealand 2.2 31 Cyprus 0.8 61 Greece -0.1 91 Timor-Leste -0.5 121 Russia -0.9
2 Norway 2.2 32 Georgia 0.7 62 Bahrain -0.1 92 Egypt -0.5 122 Mexico -0.9
3 Finland 2.2 33 Malta 0.7 63 Bulgaria -0.2 93 Ethiopia -0.6 123 Laos -0.9
4 Denmark 2.2 34 Qatar 0.7 64 Jamaica -0.2 94 Armenia -0.6 124 Kenya -1
5 Sweden 2.1 35 Poland 0.7 65 Suriname -0.2 95 Myanmar -0.6 125 Lebanon -1
6 Singapore 2.1 36 Brunei Darussalam 0.7 66 Turkey -0.2 96 Vietnam -0.6 126 Uganda -1
7 Switzerland 2 37 Rwanda 0.6 67 Ghana -0.2 97 Sierra Leone -0.6 127 Kyrgyzstan -1.1
8 Luxembourg 2 38 Czechia 0.6 68 India -0.2 98 Ecuador -0.6 128 Nigeria -1.1
9 Canada 1.9 39 Lithuania 0.6 69 Indonesia -0.3 99 Algeria -0.6 129 Uzbekistan -1.2
10 Netherlands 1.9 40 Latvia 0.5 70 Argentina -0.3 100 Mali -0.6 130 Cameroon -1.2
11 United Kingdom 1.8 41 Spain 0.5 71 Belarus -0.3 101 Djibouti -0.6 131 Haiti -1.2
12 Germany 1.8 42 South Korea 0.5 72 China -0.3 102 Niger -0.6 132 Zimbabwe -1.3
13 Iceland 1.8 43 Costa Rica 0.5 73 Belize -0.3 103 Malawi -0.7 133 Cambodia -1.3
14 Australia 1.8 44 Saudi Arabia 0.4 74 Macedonia -0.3 104 Bolivia -0.7 134 Rep. of the Congo -1.3
15 Hong Kong 1.6 45 Namibia 0.3 75 Kuwait -0.3 105 Gambia -0.7 135 Tajikistan -1.3
16 Bhutan 1.6 46 Cuba 0.3 76 Colombia -0.4 106 Honduras -0.7 136 Venezuela -1.4
17 Ireland 1.5 47 Jordan 0.3 77 Serbia -0.4 107 Paraguay -0.7 137 Iraq -1.4
18 Austria 1.5 48 Oman 0.2 78 Thailand -0.4 108 Dominican Republic -0.7 138 Angola -1.4
19 Japan 1.5 49 Slovakia 0.2 79 Albania -0.4 109 Guatemala -0.7 139 Congo (Dem Rep)² -1.4
20 Belgium 1.5 50 Italy 0.2 80 Mongolia -0.5 110 Nepal -0.7 140 Chad -1.4
21 United States 1.4 51 Croatia 0.2 81 Philippines -0.5 111 Pakistan -0.8 141 North Korea -1.5
22 Uruguay 1.3 52 Hungary 0.1 82 Tanzania -0.5 112 Ukraine -0.8 142 Turkmenistan -1.5
23 France 1.3 53 Malaysia 0 83 Peru -0.5 113 Moldova -0.8 143 Afghanistan -1.5
24 Estonia 1.2 54 South Africa 0 84 El Salvador -0.5 114 Gabon -0.8 144 Sudan -1.5
25 UAE 1.1 55 Romania 0 85 Guyana -0.5 115 Iran -0.8 145 Syria -1.6
26 Chile 1 56 Senegal -0.1 86 Bosnia and Herz. -0.5 116 Kazakhstan -0.8 146 Libya -1.6
27 Portugal 0.9 57 Montenegro -0.1 87 Ivory Coast -0.5 117 Bangladesh -0.8 147 Yemen -1.6
28 Israel 0.8 58 Tunisia -0.1 88 Brazil -0.5 118 Mozambique -0.9 148 South Sudan -1.7
29 Slovenia 0.8 59 Burkina Faso -0.1 89 Zambia -0.5 119 Nicaragua -0.9 149 Somalia -1.7
30 Botswana 0.8 60 Morocco -0.1 90 Panama -0.5 120 Azerbaijan -0.9 150 Equatorial Guinea -1.8
1: See glossary for definitions 2:Democratic Republic of the Congo

Note: Ranked from strong (2.5) to weak (-2.5) by country
Regulatory quality in Serbia is on a middle level
Political environment: regulatory quality
Percentile rankings in regulatory quality in Europe & Central Asia in 2017 ▪ In 2017, Serbia ranked #94 in Regulatory
Quality out of 214 countries and territories
0%-20% 21%-40% 41%-60% 61%-80% 81%-100% covered by the Worldwide Governance
Indicators
▪ It comes #39 when compared to other 49

countries in its region Europe & Central
Asia
▪ Percentile rank indicates the country's rank

among all countries covered by the
aggregate indicator, with 0 corresponding
to the lowest, and 100 to the highest rank
▪ Regulations are the rules that govern the

everyday life of a country. Regulatory quality
captures the ability of the government to
create and implement policies and
procedures that support economic growth
and social welfare

Moderate risks from political instability and threat of
violence or terrorism
Political environment: governance
Governance against political instability and threat of violence/terrorism in 2017

# Country Estimate # Country Estimate # Country Estimate # Country Estimate # Country Estimate
1 New Zealand 1.5 31 Cuba 0.7 61 Zambia 0.1 91 Bolivia -0.3 121 Bahrain -0.9
2 Singapore 1.5 32 Estonia 0.7 62 Serbia 0.1 92 Georgia -0.4 122 Algeria -1.0
3 Iceland 1.4 33 Namibia 0.7 63 Ghana 0.1 93 Bosnia and Herzeg. -0.4 123 Mozambique -1.0
4 Luxembourg 1.3 34 United Arab Em. 0.6 64 Romania 0.1 94 Brazil -0.4 124 Tunisia -1.1
5 Malta 1.3 35 Cyprus 0.6 65 Belize 0.1 95 Morocco -0.4 125 Myanmar -1.1
6 Switzerland 1.2 36 Germany 0.6 66 Rwanda 0.0 96 Kyrgyzstan -0.4 126 Kenya -1.1
7 Brunei Darussalam 1.2 37 Qatar 0.5 67 Sierra Leone 0.0 97 North Korea -0.5 127 Cameroon -1.1
8 Norway 1.2 38 Poland 0.5 68 Timor-Leste 0.0 98 Indonesia -0.5 128 Ivory Coast -1.1
9 Bhutan 1.1 39 Costa Rica 0.5 69 Belarus 0.0 99 Rep. of the Congo -0.5 129 Venezuela -1.2
10 Japan 1.1 40 Latvia 0.5 70 Kazakhstan 0.0 100 Jordan -0.5 130 Philippines -1.2
11 Canada 1.1 41 Laos 0.4 71 Montenegro 0.0 101 Honduras -0.6 131 Bangladesh -1.2
12 Portugal 1.1 42 Belgium 0.4 72 Guyana 0.0 102 Uganda -0.6 132 Niger -1.3
13 Finland 1.1 43 Albania 0.4 73 Kuwait 0.0 103 Guatemala -0.6 133 Chad -1.3
14 Uruguay 1.1 44 Panama 0.4 74 Senegal 0.0 104 Tanzania -0.6 134 Egypt -1.4
15 Austria 1.0 45 Chile 0.4 75 Nicaragua 0.0 105 Saudi Arabia -0.6 135 Lebanon -1.6
16 Botswana 1.0 46 Bulgaria 0.4 76 Gabon -0.1 106 Mexico -0.6 136 Ethiopia -1.7
17 Ireland 1.0 47 Vietnam 0.3 77 Ecuador -0.1 107 Nepal -0.7 137 Turkey -1.8
18 Czechia 1.0 48 United States 0.3 78 Greece -0.1 108 Tajikistan -0.7 138 Ukraine -1.9
19 Sweden 1.0 49 South Korea 0.3 79 Equatorial Guinea -0.1 109 Russia -0.7 139 Mali -1.9
20 Netherlands 0.9 50 Spain 0.3 80 Turkmenistan -0.1 110 Haiti -0.7 140 Nigeria -1.9
21 Australia 0.9 51 United Kingdom 0.3 81 Gambia -0.2 111 Armenia -0.7 141 Sudan -2.0
22 Slovenia 0.9 52 Jamaica 0.3 82 Moldova -0.2 112 Djibouti -0.7 142 Congo (Dem Rep)1 -2.3
23 Slovakia 0.9 53 Italy 0.2 83 El Salvador -0.2 113 Thailand -0.8 143 Libya -2.3
24 Denmark 0.9 54 France 0.2 84 Macedonia -0.2 114 Azerbaijan -0.8 144 Somalia -2.3
25 Hong Kong 0.8 55 Argentina 0.2 85 China -0.3 115 Zimbabwe -0.8 145 Iraq -2.3
26 Mongolia 0.8 56 Cambodia 0.2 86 Peru -0.3 116 Colombia -0.8 146 Pakistan -2.4
27 Hungary 0.8 57 Malaysia 0.2 87 South Africa -0.3 117 India -0.8 147 South Sudan -2.5
28 Lithuania 0.8 58 Dominican Republic 0.2 88 Malawi -0.3 118 Israel -0.9 148 Syria -2.6
29 Croatia 0.7 59 Suriname 0.1 89 Uzbekistan -0.3 119 Burkina Faso -0.9 149 Afghanistan -2.8
30 Oman 0.7 60 Paraguay 0.1 90 Angola -0.3 120 Iran -0.9 150 Yemen -2.9
1: Democratic Republic of the Congo

Note: Ranked from strong (1.5) to weak (-3).. This indicator measures perceptions of the likelihood of political instability and/or politically-
motivated violence, including terrorism
APPENDIX
▪ Data description and methods
▪ Glossary
▪ Authors
72
Methodology and data used in this report
Data description and methods (1/2)
Data sources
The Statista Country Reports present quantitative data from various private and public sources of information. These sources include the International
Monetary Fund, the World Bank, the United Nations, the OECD, the World Economic Forum, the International Labour Organization, the CIA World
Factbook, the Election Guide, the Freedom House, the Political Handbook of the World and Statista itself. The data sources are indicated in footnotes
throughout the report.
Forecasts and estimates

Certain diagrams within this Country Report include estimates or forecast values for the years 2017 to 2058. Missing datapoints in time series are
subjected to interpolation when necessary. Estimated values and their sources are indicated in footnotes throughout the report.
Real GDP calculation

A country's real GDP is an inflation-adjusted GDP assessment reflecting its net growth. It can be used to compare economy sizes across countries. The
data in this report are presented in U.S. dollars and maintain the growth rates of the real GDP series. The data are expressed in the base year of each
country's national accounts, the year is country specific. For more information please refer to World Economic Outlook Database FAQ.
Difference between current and constant US$

Data reported in current US$ reflect the value the currency has in a particular year. Current data series are influenced by the effect of price inflation and
differences in exchange rates and the comparability of growth rates between countries is limited.
Data expressed in constant US$ reflect the value of a currency in a particular base year. The individual base year listed in a country’s national accounts
differs from country to country. Constant series are used to measure the true growth of a series by adjusting for the effects of price inflation.
73
Methodology and data used in this report
Data description and methods (2/2)
Business culture data

The data concerning the country-specific business cultures were collected between January 5 and February 19, 2019. In order to get reliable insights
into the country-specific business cultures, solely people with business experience in the respective country were included in the survey.
The survey sample consists of 381 participants for a total of 127 countries. Due to the small sample size, the information presented in this report gives
the reader a qualitative rough impression of the business culture in a country and cannot always be generalized.
Statista Fact Check

The Statista Fact Check of international retail and eCommerce structures was carried out between January 5 and February 19, 2019. In order to collect
information about the national retail and eCommerce characteristics, only people living in the country of interest were asked to participate in the Fact
Check.
The Statista Fact Check includes 254 participants and covers 127 countries worldwide. The information presented by the Statista Fact Check gives the
reader an impression of the retail and eCommerce structures within the country, but cannot always be generalized.
Determination of retail market development stages

The development stages of the retail markets were identified based on the specific features of each individual retail market. In cases where only two out
of three features qualified a country for a certain development stage, the country was placed in the transition zone or at the beginning of the higher
development stage. For instance, in Egypt international chains operate in rural areas as well as medium-sized and large cities and the grocery market is
characterized by international, national and independent store ownership (all indicators for a well-developed retail market). But since there is no
possibility to pay via smartphones but only via traditional and electronic payment methods (indicator for a maturing market), Egypt was assigned an
early well-developed retail market stage.
74
Glossary of terms
Glossary (1/4)
Central bank interest rates: The central bank policy rate (CBPR) Current US$: Data reported in current US$ reflect the value the
is the interest rate that is used by central banks to implement or signal currency has in a particular year. Current data series are influenced by
their monetary policy stance. It is set to influence the economy (e.g. the effect of price inflation and differences in exchange rates, and the
consumer prices, exchange rate or credit expansion, among others). It comparability of growth rates between countries is limited.
also establishes the levels of the rest of the interest rates in the
economy as most private banks obtain their money from the central Discounter: A discounter is a department store which offers items at
banks at that rate. a lower price than other retail stores.
Constant US$: Data expressed in constant US$ show the data for Disposable income: Gross national disposable income may be
each year in the value of a particular base year. The base year of each derived from gross national income by adding all current transfers in
country's national accounts is country specific. Constant series are used cash or in kind, receivable by resident institutional units from non-
to measure the true growth of a series by adjusting for the effects of resident units, and subtracting all current transfers in cash or in kind
price inflation. payable by resident institutional units to non-resident units.
Control of corruption: Perceptions of the extent to which public Ease of doing business score: The ease of doing business score
power is exercised for private gain, including both petty and grand forms captures the gap of each economy from the best regulatory
of corruption, as well as "capture" of the state by elites and private performance observed across all economies considered. An economy's
interests. ease of doing business score is reflected on a scale from 0 to 100, where
0 represents the lowest and 100 represents the best performance.
Convenience store: A convenience store sells convenience goods
(e.g. frequently purchased inexpensive goods) and usually opens from Electronic payment method: Electronic payment methods
early hours to late at night. combine debit and credit card payments.
75
Glossary of terms
Glossary (2/4)
Expense (% of GDP): Expense is cash payments for operating Government expense: Expense is cash payments for operating
activities of the government in providing goods and services. It includes activities of the government in providing goods and services. It includes
compensation of employees (such as wages and salaries), interest and compensation of employees (such as wages and salaries), interest and
subsidies, grants, social benefits, and other expenses such as rent and subsidies, grants, social benefits, and other expenses such as rent and
dividends. dividends.
Fiscal deficit/surplus: Fiscal deficit occurs when government Government revenue: Revenue is cash receipts from taxes, social
expenses exceed revenues. When revenues exceed expenses, there is a contributions, and other revenues such as fines, fees, rent, and income
fiscal surplus. from property or sales. Grants are also considered as revenue but are
excluded here.
Fixed broadband subscriptions: Fixed subscriptions to high-
speed access to the public internet at downstream speeds equal to or Gross domestic product: Gross domestic product is the expen-
greater than 256 kbit/s. diture on goods and services by residents in the form of consumption
expenditures, gross capital formation and exports minus imports.
Foreign direct investment: Foreign direct investment is an
investment made by a resident enterprise in one economy (direct Handcart or pavement vendors: Handcart or pavement
investor or parent enterprise) with the objective of establishing a lasting vendors are street vendors, which sell products without a solid location
interest in an enterprise that is resident in another economy. or building.
General government gross debt: Gross government debt Hypermarket: A hypermarket is a very large self-service warehouse
consists of all liabilities that require payment or payments of interest that combines the features of a supermarket, department store,
and/or principal by the debtor (government) to the creditor at a date or discount store and specialty store in one location.
dates in the future, such as loans, insurance, pensions and debt
securities. Independent, owner-based store: An independent, owner-
based store is a small store with a single or up to three locations.
Usually, the store is owned by an individual or a two-person partnership.
76
Glossary of terms
Glossary (3/4)
Inflation: The rate of inflation is the percent change in the average Merchandise trade: Goods which add or subtract from the stock of
consumer price index (CPI). The average CPI is a measure of a country's material resources of a country by entering (imports) or leaving (exports)
average level of prices based on the cost of a typical basket of consumer its economic territory.
goods and services in a given period.
Mobile payment method: Mobile payment means the use of
Internet penetration: Share of individuals in a country who have smartphones to pay at a grocery store.
used the Internet (from any location) in the last 3 months.
Mobile phone subscriptions: Subscriptions to a public mobile
Labor force: The labor force is the sum of persons in employment telephone service that provide access to the PSTN using cellular
plus persons in unemployment. Together, these two groups of the technology.
population represent the current supply of labor for the production of
goods and services taking place in a country through market Net official development assistance: Net official development
transactions in exchange for remuneration. assistance (ODA) consists of disbursements of loans made on
concessional terms (net of repayments of principal) and grants by official
Large city: A large city is characterized by more than 100,000 agencies of the members of the Development Assistance Committee
inhabitants. (DAC), by multilateral institutions, and by non-DAC countries to promote
economic development and welfare in countries and territories in the
Logistics performance index: Logistics professionals' perception DAC list of ODA recipients. It includes loans with a grant element of at
of a country's quality of trade and transport-related infrastructure (e.g. least 25 percent (calculated at a rate of discount of 10 percent).
ports, railroads, roads, information technology), on a scale ranging from
1 (very low) to 5 (very high). Scores are averaged across all respondents . Real GDP: Real gross domestic product (GDP) is an inflation-adjusted
measure that reflects the value of all goods and services produced by an
Medium-sized city: A medium-sized city has a population between economy in a given year, expressed in base-year prices, and is often
20,000 and 100,000 people. referred to as "constant-price", "inflation-corrected" GDP or "constant
dollar GDP". Unlike nominal GDP, real GDP can account for changes in
price level and provide a more accurate figure of economic growth.
77
Glossary of terms
Glossary (4/4)
Revenue, excluding grants (% of GDP): Revenue is cash

receipts from taxes, social contributions, and other revenues such as
fines, fees, rent, and income from property or sales. Grants are also
considered as revenue but are excluded here.
Rural area: A rural area is characterized by towns or villages of less

than 20,000 residents.
Trade in commercial services: Trade in services refers to the

sale and delivery of an intangible product, called a service, between a
producer and consumer across country borders.
Traditional payment method: The traditional payment method

combines cash and check payments.
Unemployment: Unemployment refers to the share of the labor

force that is without work but available for and seeking employment.
Value added: Value added is the net output of a sector after adding
up all outputs and subtracting intermediate inputs. It is calculated
without making deductions for depreciation of fabricated assets or
depletion and degradation of natural resources.
78
About the Statista Global Consumer Survey
50+ 28 1,400+ 120,000+

topics & industries countries int. brands consumers
The Statista Global Consumer Survey offers a global perspective

Marketing & Health
on consumption and media usage, covering the offline and online Social Media
world of the consumer. It is designed to help marketers, planners
and product managers understand consumer behavior and
consumer interactions with brands. eCommerce & Smart Home
Retail
▪ Customized Target Groups
▪ Do-it-yourself Analyses Internet & Devices Travel
▪ Content Specials
Digital Media eServices
Mobility Characteristics &

Demographics
Finance Additional
Characteristics
Find out more on www.statista.com/customercloud/global-consumer-survey

79
About the Statista Consumer Market Outlook
200+ 50+ 13 50,000+

markets countries years (2010-2023) interactive statistics
The Consumer Market Outlook presents the key performance 4 Home &
Accessories
indicators sales, revenues and prices of the most important Laundry Care
consumer markets worldwide. Our specialized analysts’ market
calculations are based on data from validated sources. Alcoholic Drinks Hot Drinks
Household
▪ Revenues, sales, prices and forecasts Apparel
Appliances
▪ More than 200 product categories in up to 50 countries
Consumer Non-Alcoholic
▪ Covering the period 2010 to 2023 Electronics Drinks
Cosmetics & OTC

Personal Care Pharmaceuticals
Eyewear Luxury Goods
Tissue &
Food
Hygiene Paper
Tobacco
Footwear
Products
Furniture Toys & Hobby
Find out more on www.statista.com/outlook/consumer-markets

80
About the Statista Digital Market Outlook
90+ 50+ 7 30,000+

markets countries years (2017-2023) interactive statistics
The Digital Market Outlook presents up-to-date figures on markets of the

digital economy. The comparable key figures are based on extensive analyses
of relevant indicators from the areas of society, economy, and technology.
What is the size of the eCommerce fashion market in Spain?
How many connected cars are already on the road in China?
The answers to these and many more questions can be found in Statista's
Digital Market Outlook. It provides forecasts, detailed market insights, and key
indicators for the digital economy.
Nine digital verticals: eCommerce, Smart Home, eTravel, Digital

Media, eServices, FinTech, Digital Advertising, Connected Car, eHealth
Direct access & downloads, fully integrated into the Statista database
Market insights, forecasts and key performance indicators
Outlook reports with segment-specific topics (top companies,

trends, deep dives)
Find out more on www.statista.com/outlook/digital-markets

About the Statista Mobility Market Outlook
Key figures from the world of automotive and mobility
Small SUVs Pickup Trucks

The Mobility Market Outlook combines key topics in mobility and
provides relevant figures and forecasts of both the automotive market
and the market of mobility services on a global scale. Large SUVs Full-size Vans
Find over 75,000 statistics about the Automotive industry:
▪ Car classes, brands, fuel types Sports Cars Minivans
▪ Connected cars, car & ride sharing
▪ Revenues, volume sales and prices for over 25 countries Mini Cars Small Cars
Coming in 2019:
Medium Cars Large Cars
Flights – airlines and carriers, flight types

Executive Cars Luxury Cars
Motorcycles – motorcycle types

Connected
Connected Cars
Hardware
Public transport – mobility carriers, online/offline shares
Infotainment
Vehicle Services
Services
Find out more on https://www.statista.com/outlook/mobility-markets

About the Statista Toplists
Find information on top companies worldwide
The Statista Toplists show essential KPIs and include contact details and
address information for each company.
The Toplists are the perfect way to start researching leads in your sales
department, to get quick insights into new markets and as a starting point for
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With the most important company figures
Coverage of most Statista industries
Available for the most important regions
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83
About Statista Research & Analysis
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84
Authors
Volker Staffa Tytti Mälkki Oliver Sánchez Melanie Mesloh

Senior Analyst Analyst Analyst Junior Analyst
volker.staffa@statista.com tytti.maelkki@statista.com oliver.sanchez@statista.com melanie.mesloh@statista.com
Volker Staffa studied Business Tytti Mälkki studied International Oliver Sánchez studied Inter- Melanie Mesloh studied Inter-
with a focus on Logistics and Business and Politics in Copen- national Business in Mexico and national Economics, Innovation
Supply Chain Management in hagen, São Paulo, and Beijing, Comparative Local Develop- Economics, and Entrepreneur-
Hamburg and Rhode Island. focusing on subnational econo- ment in Germany, Italy, and ship in Bremen and Hatfield.
metric analysis. Hungary.
Volker has been responsible for Melanie joined Statista in fall
the Statista Industry Reports Tytti has been part of Statista Oliver joined Statista in summer 2018 with prior experience in
since 2012. since summer 2017 with prior 2018 after numerous years in public research.
experience in consulting and marketing and strategy.
communications.
www.statista.com

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Featuring

Tytti Mälkki studied International Business in Copenhagen, São Paulo,

01 Introduction 04 Fitch Solutions Risk Indices 07 Infrastructure

02 Economy 05 Society 08 Politics

▪ Business culture survey

Religious affiliation in % of population Ethnic groups in % of population

Land use in % of total area Population in major urban areas in millions

31.1% 2.1% 29.6% 37.1%

Latin America & 14:50

Middle East & North 5:55

Economy Trade & Investment

▪ Serbia experiences a growth in the emergence of new businesses

▪ With an index score of 57.2, the operational risk in Serbia is relatively

Society, retail & consumption Politics

▪ The total FinTech transaction value is forecast to grow by 67.7% from

Communication standards Business meeting procedures

▪ Bargaining is very common.

Importance of business networks Gender equality

Slow business months Work-life balance

Real GDP1 in billion US$2

International Monetary Fund estimate

Serbia Belarus Hungary

Real GDP per capita1 in US$2 in 2018

Value added1 by sector in % of GDP

9.0% 7.7% 6.0%

50.4% 50.4% 50.0%

15.8% 16.7% 17.6%

2011 2014 2017

1: See glossary for definitions

Inflation1 and central bank interest rates2 in %

Expenses1 and revenues1 in % of GDP

2009 2013 2017

1: See glossary for definitions

Expenditure in % of GDP in 2017

19.4% 19.6% 21.7%

General government gross debt1 in % of GDP

International Monetary Fund estimate

1: See glossary for definitions 2: Statista estimate

Net official development assistance1 received in % of gross capital formation

1: See glossary for definitions

Total labor force1 in thousand

2,261 2,188 2,182 2,212 2,192 2,172 2,154

International Labour Organization estimate

1: See glossary for definitions

Employment in % of total labor force Educational attainment of population over 15 in 2020

Unemployment1 in % of total population Unemployment1 in % of total population

9.0% 8.8% 9.0% 9.2% 8.9% 8.6% 8.1%

1: See glossary for definitions

Serbia 5.5 days 21 days 225.5 hours 2.0 years

Time needed Time needed Efficiency of

Serbia 12 days 15 days 2.4

The U.S. 6 days 5.4 days 3.7

▪ The Global Competitiveness Index 4.0

▪ Competitiveness is a set of institutions,

5.4 92.6 90.0

65.0 65.7 68.7

1.7 1.6 1.8

2012 2014 2016 Serbia Europe & Central Asia

1: See glossary for definitions

1: See glossary for definitions

Goods-related services Transport Travel Goods-related services Transport Travel

2.4 2.4 2.1

1.1 1.2 1.4 1.1 1.1 1.2 1.1 1.2 1.4

Top global inward FDI1 flows in billion US$2 in 2017