Serbia Economic and FDI Outlook slide image

Serbia Economic and FDI Outlook

National Bank of Serbia Investments Remain at a High Level Preceded by achieved macroeconomic stability, investment cycle began in 2015... Chart 7 Fixed investment share in GDP (nominal terms, in % of GDP) ...supported by diversified financing sources Chart 8 Key sources of investment financing (in EUR mln) 14.000 24.2 25 23.3 22.5 22.7 22.8 23.4 24.1 21.4 12.000 20.0 20 20 15.9 17.0 17.1 17.7 10.000 8.000 15 6.000 10 4.000 2.000 5 0 0 -2.000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* 2025* 2026* Private investment -4.000 Government investment *NBS estimate Gross fixed investment According to SORS data, the share of fixed investments in nominal GDP in 2023 has reached the level of close to 23%. Government investments reached level of about 7% in 2023 and should remain around that level in the medium term. • Starting from the analysis of the planned capital projects in the infrastructure in the next 3 years and the EXPO 2027 project, in the medium term we expect that the share of investments in GDP will increase further. . • • 2014 2015 2016 2017 Government CAPEX ■Domestic companies profitability (estimate) 2018 2019 ■Domestic investment loans (growth) FDI 2020 2021 2022 In earlier years, investments have largely relied on FDI. Owing to maintained macroeconomic and financial stability, relative stability of exchange rate, as well as fiscal consolidation, in recent years three more strong pillars for financing investments have been established: multiplied profitability of the economy, investment loans and doubled government investments. On top of that, FDI inflow reached record levels of around EUR 4.4 bn and 4.5 bn in 2022-2023. 6
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