12th Lap Time Conference

Three-quarters of AmCham member companies were planning to grow their business and make new investments in 2025 and were looking to the Government for institutional reforms and greater commitment to education, according to AmCham’s traditional annual business environment and investor confidence survey, 12th Lap Time, presented today. AmCham members reported moderate satisfaction with Serbia’s business environment, awarding it a score of 3 (on a scale from 1, lowest, to 5, highest). Amid a gradual upward trend in satisfaction rates, this year registered the highest scores for business confidence since the survey was first done in 2013. Also polled were non-member micro and small entities (MSEs), which shared the views of larger businesses with a confidence score of 2.8.

When asked about their performance in 2024, both AmCham members and MSEs reported exceeding previous expectations and seeing results better than in 2023.

“The good news is that, this year, businesses have been reporting results similar to those last seen in 2019, clearly suggesting the economy has been gradually recovering after the global shocks caused by the Covid pandemic and the war in Ukraine. To continue and build upon this trend, it is crucial for us to work with the Serbian Government to accelerate institutional reforms in the long run. Here we primarily mean digitalizing the judiciary, including by rolling out the e-Sud system to automate court procedures; ensuring electronic documents are recognized in employment procedures; continuing to enhance regulations that promote investment into green energy, primarily by amending the Energy Law; and updating employment rules to better align them with the needs of today’s labor market,” commented Stefan Lazarević, AmCham President. “AmCham stands ready to support reforms, promote regional and European integration, and help strengthen economic ties with the United States, as well as being the most vocal ambassador for Serbia as an attractive destination for investment.”

Serbian Prime Minister Miloš Vučević said his government saw AmCham as a partner in addressing challenges to create a better business environment. “These survey findings are encouraging but also place a responsibility on us. Three-quarters of AmCham members saw 2025 as an opportunity to invest more, and, while the 2024 satisfaction score of 3 is good, we would like to improve on it in the coming year. The Serbian Government is partnering with AmCham to create a stable, effective, and predictable business environment.”

Expectations for 2025

Companies were more optimistic for 2025 than they had been for this year. Some three-quarters of all AmCham members expected to see growth and new investment in the coming year, while one-half also believed they would take on more staff. Although somewhat more cautious in their forecasts, historic highs of one-half and one-third of all MSEs, respectively, were expecting growth and planning new hiring.

Labor supply remains key challenge

In common with past years, labor supply issues were seen as the primary constraint to doing business. This assessment was also supported by the fact that employment growth was the sole aspect of doing business that did not surpass 2024 expectations, suggesting firms were increasingly in need of staff. When asked to name specific challenges, the respondents cited high expectations of prospective hires in terms of salaries and benefits, lack of qualified staff in the Serbian market, and high tax burdens on employee pay.

As expected, the key improvement MSEs would like to see in this regard would be to reduce payroll taxes. Conversely, given their greater latitude in seeking long-term strategies and specific labor needs, AmCham members prioritized continuing investment in education, an area that both AmCham companies and the MSEs agreed should remain the Government’s focus for promoting growth.

By contrast, high inflation, the main challenge identified in last year’s survey, has lost much of its importance for the companies surveyed, suggesting the macroeconomic situation has stabilized both in Serbia and globally.

Reforms for long-term growth

For more than six years, AmCham members have seen efforts to tackle corruption, improve the rule of law, and make the judiciary more efficient as the reforms that the Serbian Government should undertake as a matter of priority to systematically improve the business environment. Slightly under one-half of all AmCham companies also highlighted e-government and the digital transformation, together with implementing the green agenda, both in the energy sector and to safeguard the environment.

Notably, businesses were expecting more flexibility from employment regulations. This aspect had been growing steadily less important over the past ten years, but the number of firms reporting it as an issue has now shot back up to 2014 levels, suggesting the need to update labor laws to adapt them to emerging needs of businesses and recognize new ways of working. Although they largely agreed with these priorities, the MSE sample primarily highlighted greater transparency and predictability of the tax system and a more efficient Tax Administration.

About the survey

AmCham performed its 12th Lap Time survey in partnership with Ipsos Strategic Marketing from July to October 2024. AmCham member companies were surveyed using an online questionnaire. Additional qualitative interviews were undertaken either face-to-face or by videoconference. Since most AmCham members are medium-sized and large firms, in keeping with past practice the survey included a sample of non-member MSEs. The opinions of both large investors and small firms were collected and compared to provide a comprehensive overview of the economy and the measures that ought to be taken to foster growth.

Download the complete survey report here.