Serbia’s GDP growth amounted to 1.9% in 2017, which was below the projections. Still, GDP grew by 4.5% in Q1 2018 in comparison with the corresponding period of the previous year.
In 2018 and over the medium term, the growth is expected to pick up, thus helping the labor market recovery and poverty reduction. The growth is expected to be driven by increased investment, stimulated by reforms to improve the business climate, and by the recovery of consumption. The growth is projected to be around 3–4% over the medium term. The average salaries were increased by 3.9% in nominal terms in 2017 as compared to 2016, mainly driven by 4.5% growth in wages in the private sector.
Since the Serbian retail market was enriched with 7 new schemes during 2017, totaling over 98,000 sq m of GLA, numerous new retailers entered Serbian retail market, such as Reserved, Sinsay, Tezenis, WYCON Cosmetics, NYX Cosmetics, Lego, Under Armour, Armani Exchange, Dune London, SuperDry etc. The number of international brands looking to enter Serbian market is also growing, yet at this moment, there is still a lack of modern shopping destinations. With 208 sq m of shopping space per 1,000 inhabitants only and the total retail stock of 345,000 sq m of GLA, Belgrade is one of the least supplied capitals in the region.
Retail parks lead development sector in Serbia, marking huge expansion in the previous few years. The demand for secondary locations remains strong, as the several cities across Serbia should witness the development of retail park formats. In terms of shopping centers development, several active projects indicate a further increase in the stock