Page 113 - SE Outlook Regions 2022

According to the Ministry of Finance of Serbia, favourable trends in the
construction sector continued in 2021, with a real growth in the value of
construction work performed by 16.5% and the number of issued
building permits up 32.9% in the first nine months of the year. At the
same time, the production of cement and construction materials
increased by 13.9% and 12.6% year on year, respectively.

3.10.6 Major Sectors

The largest sector of the Serbian economy is the services sector, which
accounts for a total of 67.9% of GDP. It is followed by the industrial
sector (26.1% of GDP) and the agricultural sector (6.0% of GDP).

According to the Ministry of Finance, the service sector is characterised
by positive trends. Retail trade continued to record real growth,
standing at 4.3% in September. At the same time, the tourist activity
measured by the number of tourist arrivals and overnight stays
increased by 31.8% and 20.4% year on year, respectively. In the first
eight months of 2021, tourism and ICT services with an increase in
exports of 50.4% and 25.5%, respectively, determined slightly more
than half of the total growth of exports of service activities of 26.0%.

The Serbian government has been keen to attract export-oriented
foreign direct investment (FDI). Major companies include automaker
Fiat Chrysler Automobiles (FCA), whose production has been affected
by shortages of semiconductors and other inputs since the start of the
pandemic. Serbia is also home to automotive suppliers such as cable
and harnessing manufacturing company Yura Corporation and Leoni,
which is set to become the largest private industrial employer in Serbia
in 2023, when a new plant in Kraljevo will create up to 5,000 jobs.

3.11 Real economy - Slovenia

3.11.1 Retail

The growth of retail sales is expected to slow down to 7.3% in 2022,
from estimated 14.8% growth in 2021, according to Erste.

Slovenia’s retail sales soared by an annual 34.3% in October,
accelerating significantly from a 17.1% y/y growth in the previous
month, according to the statistics office.

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