Serbia among countries with moderate business risk – Political instability impacting economy's competitiveness

The credit rating house Dun & Bradstreet reported yesterday that Serbia was in the group of countries with a moderate business risk and that the competitiveness of its economy was impacted by an unstable political environment in the region. Of the countries in the region, Croatia, Bulgaria, Hungary, Macedonia and Albania are in the same group.

Slovenia and Romania have a better rating (mild risk), whereas Bosnia and Herzegovina has been rated lower (very high risk).

The rating given to a country indicates the level of business risk in that country and provides information on the efficiency of foreign payments, as well as on the profitability of potential investments.

The political situation in the region is increasingly more complex, the D&B experts estimate and point out that Serbia's potential long-term growth is stimulated by an increase in international competitiveness, due to which the government is heading towards restructuring the public sector, a process entailing privatization and closing down state-owned enterprises operating with losses.

It has been pointed out that, despite Serbia's progress on the global competitiveness list of the World Economic Forum by four places compared to the previous year, the Serbian economy is still one of the least competitive ones in Europe and is 90th on the list of 140, being burdened by excessive regulation, inefficient administration and an unstable political environment.

The courts in Serbia are overburdened and the rule of law is compromised by the lack of capacities in the judiciary, D&B points out.

Dun & Bradstreet is the biggest and oldest credit rating house in the world and has existed for over 175 years. In Serbia, it is represented by Bisnode.

Dun & Bradstreet d.o.o. Beograd

Dun&Bradstreet Corporation SAD

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Serbia business risk

business in Serbia

Serbia credit rating

restructuring public sector

World Economic Forum

competitiveness of economy