Serbia

Key facts

Chemical industry snapshot

Relative Importance of the Activity – Gross Value Added

According to the data of the Statistical Office of the Republic of Serbia, the gross value added (GVA) in the chemical, rubber and non-metal industries in 2020 amounted to EUR 1.2 billion, which accounts for 3.1% of the total GVA of the Republic of Serbia, with a year-on-year real drop rate of 1.5%.

Regarding the gross value added of the manufacturing section, the largest share accounted for the manufacture of rubber and plastic products (8.2%, i.e. EUR 509.5 million), and the manufacture of chemicals and chemical products (5.6%, i.e. EUR 364.4 million). GVA in the manufacture of non-metallic mineral products amounted to EUR 275.6 million (4.4% of GVA of the section of manufacturing), and to EUR 66.3 million in the other mining and quarrying section (7.7% of the mining and quarrying section GVA).

The highest year-on-year GVA growth was recorded in the manufacture of chemicals and chemical products (6.6%), whereas a decrease was recorded in the manufacture of rubber and plastic products (-5.1%), in the manufacture of other non-metallic mineral products (-3.2%) and in the other mining and quarrying section (-6.9%).

Companies and Entrepreneurs

According to the calculations of the CCIS, and based on the data of the Business Registers Agency, 3,083 companies were operating in the chemical, rubber and non-metal industries in 2021, i.e. 2.3% of the total registered companies in the Republic of Serbia. Out of that number, the majority of companies are registered for the manufacture of rubber and plastic products (41.0%). A somewhat lower number of companies operated in the manufacture of non-metallic mineral products (25.2%) and the manufacture of chemicals and chemical products (23.7%).  The lowest number of active companies (10.1%) is in the other mining and quarrying activity. In addition to companies, about 4,658 entrepreneurs were engaged in chemical, rubber and non-metal industries in 2021.

In addition to companies, in 2020, about 4,500 entrepreneurs were engaged in chemical, rubber and non-metal industries.

Turnover

The total turnover, i.e. the total value of sold products and services in the non-financial business economy in the Republic of Serbia amounted to EUR 95.9 billion in 2020, which constitutes a year-on-year drop of 0.4%. In 2020, the chemical, rubber and non-metal industries recorded a turnover of EUR 5.2 billion, which accounts for 5.4% of the total turnover in the non-financial business economy. Since 2016, the turnover in these industries has recorded a progressive year-on-year growth rate.

How are we doing?

Industrial Production

In 2021, the industrial production in the section of manufacturing grew by 5.6% as compared with 2020. If the period from 2014 is observed, it is noticed that this economic indicator has recorded a continued year-on-year growth. In 2021, A 27.6 % growth in industrial production was recorded in the section of mining and quarrying.

The highest increase in production, i.e. 18.2%, was recorded in the other mining and quarrying section, whereas the manufacture of rubber and plastic products and the manufacture of other non-metallic mineral products recorded a significantly smaller growth of 4.9% and 9.1% respectively. The year-on-year drop in industrial production was not recorded in any activity of these industries, but in the manufacture of chemicals and chemical products the growth is the smallest and amounts to 1.8%. In the five-year period, (2017–2021), all observed activities recorded an average year-on-year growth in industrial production in the range of 0.5% to 4.5%.

Employment

According to the data of the Statistical Office of the Republic of Serbia, 2.2 million employees were registered in the Republic of Serbia legal entities and entreprises in 2021. The number of employees in the chemical and rubber industry, in the manufacture of non-metallic mineral products and in the other mining and quarrying section amounted to 61,898 which is higher by 4.1% as compared with 2020.

The majority of employees are in the manufacture of rubber and plastic products, 31,970 (y-o-y growth of 5.9%), whereas the lowest number of employees is in other mining and quarrying, specifically 3,194 (y-o-y growth of 4.1%).

In the total number of employees in the Republic of Serbia, the share of employees in the chemical and rubber industry, manufacture of non-metallic mineral products and other mining and quarrying is 2.9%. The five-year average growth of employees (2017–2021) in the above industries amounts to 3.5%.

Salaries and Wages

In the period January–December 2021, the average salaries and wages paid out in the Republic of Serbia amounted to EUR 772, whereas the average salaries and wages without taxes and contributions (net) stood at EUR 560. The growth in gross salaries and wages, in the period January–December 2021, as compared with the same period in 2020, amounted to 9.4% nominally, i.e. 5.2% in real terms. At the same time, net salaries and wages grew by 9.6% nominally and by 5.4% in real terms.

In 2021, the average salaries and wages were the highest in the manufacture of chemicals and chemical products (EUR 847), and were higher by 9.7% as compared with the average salaries and wages in the Republic of Serbia. In the other mining and quarrying sector, the average salaries and wages are higher by 8.8%  whereas the lowest salaries and wages were recorded in the manufacture of rubber and plastic products and the manufacture of non-metallic mineral products, amounting to EUR 762 (1.3% below the republic average) and EUR 705 (8.6% below the republic average), respectively. The largest increase in the average salaries and wages in 2021, as compared with 2020, was recorded in the manufacture of chemicals and chemical products (13.6%).

Foreign Trade

In 2021, the export of chemical, rubber and plastic products and other non-metallic mineral products amounted to EUR 3.4 billion, which was higher by 31.0% as compared with 2020 . Exports account for 16.0% of the total goods exports of the Republic of Serbia. The average annual export growth rate in the five-year period (2017–2021) amounts to 11.5%.

In 2021, the value of import amounted to nearly EUR 4.4 billion, which is higher by 23.5% as compared with 2020, and accounts for 20.2% of the total import of the Republic of Serbia. The average annual import growth rate in the five-year period (2017–2021) amounts to 10.8%.

The deficit in foreign trade in chemical, rubber and plastic products and other non-metallic mineral products amounted to EUR 906.3 million, with the coverage of import by export of 79.2%. The highest export was recorded with rubber and plastic products (EUR 1.9 billion), which is higher by 24.1% as compared with 2020, along with the recorded positive foreign trade balance (EUR 607.3 million).

Total Realized Investments

The total realized investments in fixed assets in the chemical, rubber and non-metal industries, in 2020, amounted to EUR 515.0 million, out of which 42.3% was realized in the manufacture of rubber and plastic products (EUR 217.8 million), 30.9% in the manufacture of chemicals (EUR 159.0 million), and 21.0% in the manufacture of other non-metallic mineral products (EUR 108.0 million).

The domestic and imported equipment had the largest share (75.4%) od the investments. Lower investments were made in buildings and civil engineering (22.9%), whereas the remaining 1.7% accounts for investments in intellectual property – research and development, software, databases and other.

Foreign Direct Investments

In 2021, according to the preliminary data of the National bank of Serbia, the total net inflow of FDIs on ground of investments of non-residents, amounted to EUR 3.9 billion.

In the manufacture of chemicals, chemical products and rubber and plastic products, a net inflow of EUR 484.8 million was recorded, which accounts for 12.5% of total FDIs in the Republic of Serbia. In the manufacture of rubber and plastic products, the net inflow of FDIs was recorded on ground of investments of non-residents, in the amount of EUR 451.8 million, and in the manufacture of chemicals and chemical products, EUR 33.0 million.

In the five-year period (2017–2021) the total net inflow of FDIs in the chemical, rubber and non-metal industries amounted to EUR 1.2 billion, and the highest inflow was recorded in 2021.