Serbia has recorded improvements in international assessments of its business environment, although the next phase of competitiveness reforms will require progress across a wider range of institutions, infrastructure and economic policies.
The OECD’s 2024 Western Balkans competitiveness assessment found that Serbia had improved in eight of 15 policy areas compared with 2021. The strongest advances were recorded in agriculture, science, technology and innovation, and employment policy. Serbia scored above the Western Balkan average in 13 areas.
International Assessments Show Strong Regulatory Performance
The World Bank’s Business Ready 2025 assessment also placed Serbia among the stronger-performing economies. The country was one of nine economies ranked in the top quintile in two of the report’s three main pillars.
Among 101 assessed economies, Serbia ranked 18th for its regulatory framework and 19th for operational efficiency. It also secured fourth place for starting a business, indicating comparatively strong administrative performance in company registration and business procedures.
Productivity Requires Broader Institutional Improvements
Maintaining competitiveness will depend on reforms extending beyond company registration, regulatory drafting and the digitalisation of administrative procedures. Productivity growth requires consistent implementation across competition policy, taxation, utilities, dispute resolution, workforce skills, state-owned enterprises, infrastructure and access to finance.
The OECD framework presented by the National Bank of Serbia (NBS) also covers energy, environmental protection and anti-corruption. These areas are increasingly relevant to the conditions under which companies operate and make investment decisions.
Governance and Sustainability Shape Investment Conditions
Competitiveness is becoming more closely connected with environmental, social and governance considerations, particularly institutional quality and sustainability. Manufacturers assessing potential expansion locations consider electricity reliability and carbon intensity, permitting transparency, transport infrastructure, workforce skills and regulatory predictability.
These factors extend beyond traditional investment incentives based primarily on low taxation. The quality and consistency of public administration, alongside energy and infrastructure conditions, influence the operating environment for businesses.
Macroeconomic Conditions Provide Scope for Further Reform
Serbia’s macroeconomic position offers an opportunity to address these structural constraints. Public debt remains manageable, banks are well capitalised, exports are expanding and foreign direct investment has established a substantial tradable-sector base.
With these foundations in place, further economic growth can increasingly depend on improvements in the business environment rather than stabilisation measures or emergency reforms. International rankings, however, do not necessarily capture how consistently regulations are enforced across sectors and individual companies. The difference between the formal quality of the regulatory framework and its practical application remains an important factor in Serbia’s competitiveness and its convergence with wealthier European economies.
