Microeconomic fundamentals (of the structural changes) of the Serbian economy in the period 2007 - 2011 and forthcoming challenges

Abstract

This paper aims to detect and analyze the structural changes in the Serbian economy in the period spanning from 2007 to 2011. This period was characterized by the eruption of the global financial and economic crisis, which spilled over in Serbia from late 2008. By pinpointing the crisis' effects on Serbian economy, we improve the approach by complementing the macroeconomic trends analysis (as a way to describe the general environment) with the firm-level data analysis, i.e. microeconomic fundamentals of the representative sample of the largest Serbian companies. Relying on the financial database of the 5,000 largest for the period from 2007 to 2011 used for statistical analysis of financial performances, and 500 largest for 2011 and 2010 used for complementing previous overall view with the case by case approach, we are trying to draw conclusions on the key structural changes within the companies and sectors of activities as well as the main characteristics of the financial position of the real sector. Finally, we make a list of imminent challenges and goals confronting the Serbian economy as a whole, and economic decision makers in particular.