Despite the state of emergency and the economic crisis, the Serbian economy successfully overcame the first wave of Covid-19 in the first six months of this year, because the number of new companies increased by 6,313 compared to the number of the ones that closed, the National Alliance for Local Economic Development (NALED) has said.
A total of 18,214 new companies were registered and 11,811 were closed in the first six months of 2020 regardless of the coronavirus pandemic and the state of emergency, NALED said in its semi-annual report written with the support of the German GiZ and the State Secretariat for Public Policies. The report, based on data collated by the Tax Authority and Business Registers Agency, said that there were 389,644 active companies and small businesses in the country.
“The coronavirus pandemic has caused a drop in economic activity,” the press release said and added that the number of new companies opened in the first six months of 2020 was almost 20 per cent lower than in the same period over the past five years while the number of companies closing down has dropped by almost 10 per cent.
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The report also said that almost 25,000 small businesses, employing close to 17,300 people, temporarily shut down in the observed period with most of them (10,000) shutting down in March. The report goes on to show that the jobs in these companies were not necessarily lost since most small businesses closed down only during the state of emergency.
“In April, at the height of the epidemic, 864 companies were founded, which is four times less than the April average in the previous five years. In May, that number was slightly higher, and in June, 5,365 companies were established, which is a record in the past five years,” the report shows.
According to NALED’s Director for Regulatory Reform, Jelena Bojović, the aforementioned statistical trends are the result of the easing of anti-corona measures and the gradual opening of the economy.
The semi-annual report also showed that among the newly established companies, there are 180 that were started by beginners in business thanks to the Start Legally programme, which implies tax exemption in the first year of business.
This post is also available in: Italiano