Serbia Industry Sectors
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Serbia has a thriving industry, despite unfavorable climatic and geographical conditions. Serbia industry sectors contribute about a quarter of the nation’s GDP. The sector, particularly the mineral fertilizer industry, is responsible for the growth of agricultural industry in Serbia as well. Serbia industrial production had a favorable growth rate of 1.1% during 2008, according to government statistical reports.[br]
The status of industrial production in Serbia over the last few years is illustrated in the graph below:
(Source: Statistical office, Republic of Serbia)
Serbia Industry Sectors: Overview
Serbia industry sectors are predominantly dominated by base metals, furniture, chemicals, mining, food processing and textiles. Other significant contributors to Serbia economy are:
Energy Industry
Serbian energy industry is instrumental to the development of the nation’s economy. The sector generates most of its revenue from hydro and thermal electricity plants in the nation. The sector is crucial for supporting operations of other Serbian industries. Besides, electrical energy produced by the sector has been one of the principal exports of Serbia. According to CIA reports, Serbia exports almost half of its total electricity production.
Pharmaceutical Industry
According to estimates of the Balkans News, the Serbian pharmaceutical industry was valued at US$1.17 billion in 2008. Besides, Serbia ranks number 14th on the list of top 20 key markets in Eastern and Central Europe. However, while the statistics look favorable, the Serbian pharmaceutical sector is passing through a sensitive phase of modernization. Despite this, pharmaceutical industry made a significant contribution to Serbia economy, accounting for 50% of the total production in the chemical industry, and 3.24% of the nation’s GDP.[br]
Machine and Construction Industry
Serbian machine and construction industry is principally located in the nation’s capital, Belgrade. The industry has been expanding rapidly, particularly as a result of modernization of the nation’s three largest cities- Belgrade, Niš and Novi Sad. The refurbishing of European Corridor 10, from the Bulgarian to the Hungarian border, has also resulted in heightened activities in the sector.
The Serbian machine and construction industry was, however, adversely impacted by the global financial crisis of 2007. During 2008, over 2000 construction companies halted their projects, 100 filed for bankruptcy, and more than 20,000 workers were laid off. The sector nonetheless continues to employ over 100,000 workers, according to reports by the Ministry of Foreign Affairs of Denmark.
