Serbia is a country in Southeastern Europe (Balkan peninsula). Serbia is a candidate for joining the European Union since 2009.
Serbia has a transitional economy, relying on manufacturing and exports, driven largely by foreign investment. Main industries of Serbian economy are automobiles, base metals, furniture, food processing, machinery, chemicals, clothes, pharmaceuticals.
The banking sector of Serbia is highly concentrated and is dominated by foreign-controlled banks. Banks in Serbia operate as universal banks.
|Nominal GDP (2016)||Nominal GDP per Capita (2016)||Real GDP Growth (2016)|
|34.6 bln EUR (+0.03%)||4 900 EUR (+0.04%)||2.8 % (2015: 0.8 %)|
According to Eurostat, nominal GDP of Serbia in 2016 was 34.6 bln EUR.
Serbia outperforms the European Union in terms of real GDP growth with the average annual differential coming to 0.9% over the past 10 years (2006 - 2016). In 2016 real GDP growth was 2.8% which was above the Euro Area average (1.8%) and above the European Union average (1.9%). Real GDP growth in 2017 - 2022 are IMF's estimates.
Chart 1. Real GDP Growth in Serbia. Source: Eurostat, International Monetary Fund.
In 2016, nominal GDP per capita in Serbia was 4 900 EUR.
Serbia has a below-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, fell behind that of the European Union by -55.9% over the past 10 years (2006 - 2016). GDP per capita at PPP in 2017 - 2022 are IMF's estimates.
Chart 2. GDP Per Capita at Purchasing Power Parity in Serbia; European Union = 100.
|CPI, MoM (Sep 2017)||CPI, YoY (Sep 2017)||CPI, Year Average (2016)|
|0.0 % (Aug 2017: 0.3 %)||3.3 % (Aug 2017: 2.6 %)||1.3 % (2015: 1.5 %)|
According to Eurostat, inflation rate in Serbia in 2016 expressed as annual percentages of average consumer prices was 1.3% which was above the Euro Area average (0.2%) and above the European Union average (0.3%). Inflation rates in 2017 - 2022 are IMF's estimates.
Chart 3. Inflation Rate in Serbia. Source: Eurostat, International Monetary Fund.
|Unemployment Rate (2016)|
|15.9 % (2015: 18.2 %)|
|BB- (speculative), outlook stable||B1 (highly speculative), outlook positive|
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Serbia signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Serbia didn't sign the automatic information exchange agreement and didn't indicate a timeline of the start of the automatic information exchange.
Serbia has not singed any bilateral agreements to automatically receive information.
Serbia has not singed any bilateral agreements to automatically send information.
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
|FATCA Status in Serbia|
|IGA agreed on 30 June 2014, Model 1|
Serbia agreed in substance to use FATCA on 30 June 2014 (Intergovernmental Agreement Model 1): the text of the IGA has not been released and financial institutions operating in Serbia are allowed to register on the FATCA website consistent with the treatment of having an IGA in effect provided that Serbia continues to demonstrate firm resolve to sign the IGA as soon as possible.
|Financial Market Development|
|3.6 (max 7.0), 101st out of 138 countries|
|4.4 (max 7.0), 88th out of 138 countries|
According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Serbia is scored 3.6 out of maximum 7.0 and ranked 101st out of 138 analysed economies, trustworthiness and confidence of financial market is scored 4.0 (92nd place).
Chart 4. Financial Market Development in Serbia. Source: WEF.
Soundness of banks is scored 4.4 bringing Serbia into the 88th place.
Chart 5. Soundness of Banks in Serbia. Source: WEF.
|Maximum Protected Amount|
|50 000 EUR|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Serbia are summarised in Table 1.
|Scheme Participants||all credit institutions operating in Serbia (including branches of foreign banks), branches of Serbian banks abroad|
|Eligible Depositors||natural persons, entrepreneurs, small legal entities, medium-sized legal entities|
|Covered Accounts||any credit balance which derives from a money deposit in banks or savings banks|
|Maximum Protected Amount||50 000 EUR|
|Paid In Currency||RSD for RSD deposits, EUR for foreign currency deposits|
Table 1. Deposit guarantee scheme in Serbia.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
|Local Currency (Serbian dinar)||Foreign Currency|
|Baa3 (lower medium grade)||B2 (highly speculative)|
Local currency (Serbian dinar) deposit ceiling for Serbia is set to Baa3 (lower medium grade), foreign currency deposit ceiling is B2 (highly speculative).
|Number of Banks|
Currently there are 31 credit institutions operating in Serbia.
All the credit institutions operating in Serbia can be classified into several categories. Table 2 summarises the number of banks in each category.
|Category||Number of Banks|