Bisnode Southern Markets Bulletin April 2016 Main topic: LOW PRICES OF RAW MATERIALS REMAIN A THREAT TO GLOBAL ECONOMY
Bisnode Southern Markets Bulletin April 2016 CONTENT EDITORIAL MAIN TOPIC: Low prices of raw materials remain a threat to global economy MICRO: Start-ups, deregistrations, insolvency proceedings, blockings TRENDS MACRO: GDP, unemployment rate, inflation GAZELLE SERBIA: Which company will be the golden Gazelle in Serbia? The Bisnode Bulletin is free of charge. Publisher: BISNODE SOUTHERN MARKETS Lead analysts: mag. GORAN DOLENC (Main topic), SANJA FILIPIČ (Micro and Macro overview) Editorial board: ESTER ŽIGON, Bisnode Slovenia MEDIADE Director: MARIA ANSELMI Graphic design: IGOR LOGAR, IGORDESIGN Photos: ARNELA HADŽIPASIĆ, Bisnode Slovenia Sources: DUN & BRADSTREET, BISNODE BOSNIA AND HERZEGOVINA, BISNODE CROATIA, BISNODE SERBIA, BISNODE SLOVENIA Photo on the front cover: ALEKSANDRA BONČINA, Sales Consultant Photo on the back cover: GAŠPER KRŽIŠNIK, Sales Consultant
Editorial LET'S BECOME A FAST AND LEAN REGION, WHICH IS FULL OF LIFE! What animal is known to be among the fastest on earth? Gazelles are able to run in bursts as fast as 100 km/h, and to run at sustained speeds of 50 km/h. What does a gazelle stands for in business terms? A gazelle is an extremely fast-growing company, one that is consistently expanding in terms of both employment and turnover over a prolonged period. These companies are fast and resourceful, bold and hardworking, open to gaining and sharing knowledge. What drives them? Excellence. But that alone is not enough! Their motto says that they can always do better! Bisnode Slovenia has been supporting the selection of Slovenian Gazelles the fastest growing companies from the beginning. I am especially fond of this project because it stands for everything that matters in business today: co-operation, integration, ambition, innovation and knowledge. And good examples are worth following! Which is why we are helping to spread these excellent practices throughout the Southern Markets region. Last year Bisnode Serbia embarked on a new project: the selection of Serbian Gazelles. The Gazelles project stands for everything that matters in business today: co-operation, integration, ambition, innovation and knowledge. The bigger picture shows us that South-eastern Europe is really becoming one region. And we at Bisnode all have great expectations for the region which is why we also feel a certain responsibility to help develop it. We feel that we can really become a dynamic, propulsive and high-tech region that can be equally (if not even more) powerful force than others in Europe. Each company in the region is looking for the best way to grow. I believe we can grow even more, and faster. How? Through cooperation, integration, mutual understanding and trust with projects like Gazelle. Why wouldn't the entire Southern Markets region become a Gazelle one day? Our strategic partner Dun & Bradstreet opened the door wider for us by offering us access to their in-depth analysis and reports. In keeping with the theme of the month we bring you the first, a summarized report of Dun & Bradstreet s Global Economic Outlook 2020 Vision. And many others will follow! general manager, Bisnode Southern Markets EDITORIAL Bisnode SM Bulletin April 2016 3
Main topic LOW PRICES OF RAW MATERIALS REMAIN A THREAT TO GLOBAL ECONOMY The global trade is strongly influenced by the economic crises, political riots and natural disasters. Nevertheless, the business risks the world is facing today are according to Dun & Bradstreet s Global Economic Outlook 2020 Vision much higher than they were 20 years ago. WHAT ARE THE ECONOMIC FORECASTS UNTIL 2020? 1 EUROPE CURRENT SITUATION: current interest rates below targets, big differences between the countries FORECAST: UK s exit from the EU, exclusion of Greece from the euro area, refugee crisis and closed borders 2 NORTH AMERICA CURRENT SITUATION: remains among the least risky regions FORECAST: stable GDP growth until 2019, $ remains a strong currency 2 1 4 3 LATIN AMERICA CURRENT SITUATION: similar to the below forecast, has been materialising in Brazil since 2013 FORECAST: lagging behind the global GDP, negative economic trends, growing pessimism, more restrictive monetary policy of the US FED will cause a rise in inflation 4 EAST EUROPE AND CENTRAL ASIA N. AMERICA EUROPE 6 ASIA CURRENT SITUATION: structural reforms have a negative impact on the business environment, but they are also a long-term opportunity for growth; geopolitical tension in the region 7 5 FORECAST: lower oil prices will reduce economic growth (2.4% p.a.), few investments 5 MIDDLE EAST AND NORTH AFRICA 3 AFRICA CURRENT SITUATION: the region depends on oil price fluctuations, unstable business environment, corruption, poor competitiveness, violation of laws, security FORECAST: oil price in 2016 under $ 40 for a barrel, as of 2017, it shall start growing again, to about $ 100 for a barrel in 2020 S. AMERICA AUSTRALIA 6 ASIA / PACIFIC CURRENT SITUATION: low GDP growth and few investments in Japan; in India, GDP increases in India but profitability is low FORECAST: the risk of overindebtedness of the Chinese companies, the risk of a balloon of investments in raw materials industry in China; the share of NPLs in India is growing 7 SUB-SAHARAN AFRICA CURRENT SITUATION Source: Dun & Bradstreet FORECAST CURRENT SITUATION: in the last two years, the prices have dropped, namely that of iron ore (by 70%), oil (by 60%), natural gas (by 50%) etc. FORECAST: lower prices of raw materials can increase the fiscal deficit, weak domestic currencies and consequently high inflation 4 Bisnode SM Bulletin April 2016 MAIN TOPIC MAIN TOPIC Bisnode SM Bulletin April 2016 5
TODAY S OPERATIONS TWICE AS RISKY AS 20 YEARS AGO Dun & Bradstreet regularly calculates the CIPS Global Risk Index (CIPS GRI). Its value ranges between 0, meaning no risk, and 100, meaning the highest risk. 25 38 40 64 77 80 CIPS GRI VALUE 1994 1999 2004 2009 2014 2016 YEAR Source: Dun & Bradstreet In 1994 we lived in a world with a Global Risk Index of 25; today, its value ranges around 80. In other words, the risk of operations at the global level has increased at least two-fold. Asia-Pacific and West and Central Europe are the regions contributing the most to this increase, and America the least. 2016: WHEN WAS THE LAST TIME RAW MATERIALS WERE SO CHEAP? Operations in 2016 will be characterised by extremely low prices of raw materials such as oil, natural gas, coal, iron ore, aluminium, copper, zinc and cotton. Considering inflation it can be established that the current prices are at the same level as they were more than a decade ago. THE CHEAPES COMMODITIES PER YEARS: a barrel of brent crude oil coal iron ore 1991 2005 2009 2003 2004 Cu 2007 Zn natural gas gasoline, crude oil copper zinc Source: Dun & Bradstreet 6 Bisnode SM Bulletin April 2016 MAIN TOPIC
SIX CENTRAL GLOBAL RISKS UNTIL 2020 THE LOW PRICES OF OIL WILL AFFECT THE CHANGES IN THE ECONOMIC POWER AMONG COUNTRIES. GLOBAL CLIMATE CHANGES WILL HAVE A NEGATIVE IMPACT ON GDP IN DIRECTLY ENDANGERED COUNTRIES AND A BROADER AREA. 1 GDP WILL DROP IN BRICS, CHINA, INDIA, RUSSIA, BRAZIL, SOUTH AFRICA. 5 2 4 3 CONTINUOUS NON-COMPLIANCE WITH THE INTERNATIONAL TREATIES SLOW GROWTH IN CHINESE DEMAND ABROAD IMPACT ON THE PERFORMANCE OF CORPORATIONS. NEGATIVE IMPACT ON DEPENDING COUNTRIES. Source: Dun & Bradstreet Read the entire report HERE. MAIN TOPIC Bisnode SM Bulletin April 2016 7
COUNTRY RISK MAP In partnership with Dun & Bradstreet, Bisnode offers business reports for 250 million companies from 220 countries all over the world. GREENLAND ICELAND SWEDEN R U S S I A N F E D E R A T I O N FINLAND NORWAY ESTONIA CANADA DENMARK LITHUANIA LATVIA IRELAND UNITED KINGDOM NETH. GERMANY POLAND BELARUS UNITED STATES OF AMERICA PORTUGAL SPAIN BELGIUM FRANCE LUX. SWITZ. CZECH REP. AUSTRIA SLOVAKIA HUNGARY SLOVENIA CROATIA BOSNIA & HERZEGOVINA ITALY MONTENEGRO ALBANIA SERBIA ROMANIA BULGARIA MACEDONIA (FYR) GREECE UKRAINE MOLDOVA TURKEY GEORGIA ARMENIA AZERBAIJAN KAZAKHSTAN UZBEKISTAN KYRGYZ REPUBLIC TURKMENISTAN TAJIKISTAN MONGOLIA NORTH KOREA MOROCCO MALTA TUNISIA CYPRUS LEBANON ISRAEL SYRIA IRAQ IRAN AFGHANISTAN C H I N A SOUTH KOREA JAPAN HAWAII (US) MEXICO THE BAHAMAS CUBA DOMINICAN REPUBLIC JAMAICA BELIZE HAITI PUERTO RICO HONDURAS GUATEMALA EL SALVADOR NICARAGUA TRINIDAD & TOBAGO COSTA RICA VENEZUELA GUYANA PANAMA SURINAME FRENCH GUIANA COLOMBIA GALÁPAGOS ECUADOR JORDAN KUWAIT ALGERIA LIBYA EGYPT BAHRAIN WESTERN QATAR SAHARA SAUDI ARABIA U. A. E. OMAN MAURITANIA MALI NIGER CHAD ERITREA YEMEN SENEGAL SUDAN GAMBIA BURKINA DJIBOUTI GUINEA BISSAU GUINEA BENIN NIGERIA SOMALIA TOGO IVORY ETHIOPIA SIERRA LEONE COAST GHANA CENTRAL AFRICAN REPUBLIC LIBERIA CAMEROON UGANDA EQUATORIAL GUINEA KENYA CONGO GABON RWANDA CONGO BURUNDI DEM. REP. (ZAIRE) TANZANIA PAKISTAN NEPAL BHUTAN INDIA BANGLADESH SRI LANKA MYANMAR TAIWAN HONG KONG (S.A.R.) LAOS THAILAND CAMBODIA PHILIPPINES VIETNAM BRUNEI SINGAPORE MALAYSIA I N D O N E S I A EAST TIMOR PAPUA NEW GUINEA SOLOMON ISLANDS PERU BRAZIL ANGOLA ZAMBIA MALAWI BOLIVIA FIJI PARAGUAY NAMIBIA BOTSWANA ZIMBABWE MOZAMBIQUE MADAGASCAR MAURITIUS AUSTRALIA NEW CALEDONIA CHILE SWAZILAND ARGENTINA SOUTH AFRICA LESOTHO URUGUAY NEW ZEALAND FALKLAND ISLANDS Bisnode D&B Southern market d.o.o. Likozarjeva ulica 3, 1000 Ljubljana, T: 080 39 03 www.bisnode.si/dnb Dun & Bradstreet assessed country risk as at January 2016. Check how country risk affects the risk of your business partners abroad. More information on www.bisnode.si/dnb. Country risk assessment 1 2 3 4 5 6 7 Low risk High risk No rating
Trends 4 COMMON MISTAKES WHEN YOU INTERPRET LARGE QUANTITIES OF COMPLEX DATA 1. YOU FIND AN ANSWER AND ARE CONTENT TO STOP THERE. The world around us is constantly changing and data is changing with it. To rely on smart data is a work in progress. 2. COMING UP WITH AN ANSWER FIRST AND THEN LOOKING FOR IT IN THE DATA. It s not a bad thing to have hypotheses, but to have decided on the answer in advance is something that should be avoided. A hypothesis must be tested critically for the result to have any value. CAUSATION ICE CREAM 3. FINDING CORRELATIONS THAT DON T HAVE ANY DIRECT CONNECTION. DRY, HOT AND SUNNY SUMMER WEATHER CAUSATION CORRELATION? SUNBURN An increase in the number of drowning accidents at the same time as sales of ice cream increase does not mean that ice cream is dangerous. After all, they both depend on it being hot and sunny. This is how many mistakes are made: you find connections but don t bother to investigate whether they are dependent on one another or on a common third factor, says Nicke Rydgren, the Head of Professional Services and Analysis at Bisnode. 4. WORKING ON YOUR OWN instead to discuss your analysis with a colleague who is neutral. It s difficult to push the analysis an extra notch on your own because the brain quickly and unconsciously starts to confirm its own conclusions. The content is a part of the article Analysis traps you should avoid published in Brains Magazine. Bisnode Sweden TRENDS Bisnode SM Bulletin April 2016 9
Gazelle Serbia WHICH COMPANY WILL BE THE GOLDEN GAZELLE IN SERBIA? Among the many companies on the market the Gazelles have been recognized in the European environment as a very special ingredient of every national economy. They are not only fast growing and exert a positive influence on their partners and the community, but they also become examples and cornerstones of economic growth. In The Year of Entrepreneurship Bisnode Serbia will for the first time award the best among the fastest growing companies in Serbia. Bisnode Serbia has established a robust methodology in bringing together experience with Gazelle projects abroad and their business intelligence expertise in Serbia. The first step was to choose the 500 fastest growing companies and to double-check their financial results and business intelligence indicators. Files for the top 20 companies to emerge out of the process were handed over to trained experts who made detailed interviews with the managers and/or owners who contributed to their success and are primarily responsible for their growth. PROMOTING THE VALUES OF GROWTH The interviews are designed to elicit an answer to the question: why are they so successful and how do they see their venture developing in the future. We look for sustainability and potential for growth, examine the risk profile, company culture and values, as well as communications within the company and the social responsibility it demonstrates. Qualitative analysis supported by quantitative data narrows the field down to five candidate files that are forwarded to the Council of Gazelles. The council is established as a body of experts that have the final decision on who earns a place among the best three gazelles in Serbia, together with their ranking. The Council of Gazelles consists of individuals and representatives of institutions and companies that are both intelligent and experienced, drawn from a wide spectrum from the commercial sphere, where they have demonstrated a strong impact with their results and the resulting reputation they reflect back on the community. Bisnode Serbia also takes care that the wider community gets information on the project and that it is promptly notified through media partnerships and collaboration with national business associations, government institutions and others that have established themselves as generous supporters of the values behind the Gazelle project. Supporters are offered the opportunity to bring attention to their partners by sponsoring candidates, and through nominees and winners of the Gazelle of Serbia project. CONNECTING AND PROMOTING COMMON IDEAS This year Serbia celebrates The Year of Entrepreneurship. So it s no coincidence that Bisnode Serbia decided to establish the Gazelle of Serbia project now, in the Year of Entrepreneurship. The aim of promoting entrepreneurship and our own project goals are tightly connected in terms of values and address society as whole in order to rise awareness of the good examples we have all around us and that make our business environment more efficient and competitive. The main goal of Gazelles of Serbia is to connect these common values with common ideas and to bring related projects together. Irina Zdravković, Bisnode Serbia Project manager of the Gazelles of Serbia contest MEMBERS OF THE COUNCIL OF GAZELLES ARE (in alphabetical order): Maria Anselmi, general manager of Bisnode Southern Markets, Marko Čadež, president of the Chamber of Commerce and Industry of Serbia, Milan Petrović, president of the Serbian Association of Managers (SAM), dr. Miloš Petrović, director of the Serbian Development Agency (RAS), Dragica Pilipovic Chaffey, CEO of Serbia Broadband (SBB), Željko Sertić, Minister of Economy, dr. Dejan Šoškić, Faculty of Economics University of Belgrade, and Aleksandar Vlahović, president of the Serbian Association of Economists. 10 Bisnode SM Bulletin April 2016 GAZELLE SERBIA
METHODOLOGY: THE STORY BEHIND THE NUMBERS THE LIST OF 500 FASTEST GROWING COMPANIES The list of the 500 fastest growing companies, the so-called Gazelles, serves as the starting point for the Gazelle contest. Based on official data, reported to APR, all companies are ranked according to their 5-year turnover performance. A 5-year period is taken into account in order to avoid the impact of sudden and short-term sales growth, and to provide a sound indicator of sustainable growth in the future. After the first selection criterion is put in place a unique methodology is applied, whereby a company should prove compliant with the following standards. The company should have a turnover of more than 30 million RSD in the last year, generated a positive net profit in the last two years, created new job positions during the last 5 years, not been involved in insolvency or account blocking procedures in the last year, not assumed excessively high credit risk to secure legal relief from its creditors, managed and operated its assets in efficiently and effectively. Robert Petrič, Bisnode Slovenia, Director of Production HAND-PICKED 50 CANDIDATES AND 20 NOMINEES The 500 listed gazelles are scored according to the BSI Bisnode Success index. The index is based on the stakeholders concept: how a company is performing from the perspective of its owners, lenders, employees and the state. The index information is combined with desktop research on the companies: history, entrepreneurial story, business model, internationalisation, brand development, innovation. A total of 50 candidates are proposed by the Bisnode intelligence unit, from which 20 nominees are then selected by the methodology committee, represented by experts in the fields of entrepreneurship, management and business analytics. Experience shows that knowledge transfer and innovation generation is an intrinsic part of their co-operation. 20 nominees are then invited to take part in the contest, and personal interviews are conducted with all of them. The aim of the structured interview is to determine the growth orientation of the company, its business model, leadership potential and potential for innovation and sustainability. The company information file is complemented by a rating report on the participating company and systematically presented in the form of a detailed company file suitable for further methodology process phases. Ljiljana Cupara, Bisnode Serbia, Rating, COO CHOOSING THE BEST FROM THE FASTEST GROWING COMPANIES The aim of the Gazelle Contest is to recognize the best company among the body of fastest growing companies. A complex yet transparent process integrates advanced business data analysis and desktop research with qualitative research. From the 20 nominated companies the methodology committee selects 5 finalists. The key and final decision on the selection of the Golden Gazelle of the year is entrusted to the highest level of the project the Council of Gazelles. In addition to the business metrics components and entrepreneurial story of the candidates the Council s decision also takes into account the values of the dynamic growth as well as the company s potential for sustainable growth. Mag. Edita Krajnović, Mediade, head of the Gazelle methodology process GAZELLE SERBIA Bisnode SM Bulletin April 2016 11
TOP 50 GAZELLE SERBIA CANDIDATES (in alphabetical order) COMPANY MUNICIPALITY TOTAL REVENUE IN 2014 (in RSD THOUSAND) NUMBER OF EMPLOYEES IN 2014 REVENUE GROWTH INDEX IN 2014 AB & CO DOO NOVI SAD Novi Sad-Grad 93,269 24 2.18 ASA IBELIK DOO BEOGRAD Beograd-Zvezdara 639,791 65 4.22 BANIJA-PAL DOO TEMERIN Temerin 497,313 85 4.95 BELIT DOO BEOGRAD Beograd-Stari Grad 166,699 22 1.44 CHEMICAL AGROSAVA DOO BEOGRAD Beograd-Novi Beograd 3.095,248 137 1.89 COMING-COMPUTER ENGINEERING DOO BEOGRAD Beograd-Čukarica 517,856 38 1.41 ĆATIĆ COMPANY DOO PRIJEPOLJE Prijepolje 451,790 52 2.27 D.A.-DIZAJN ARHITEKTURA DOO BEOGRAD Beograd-Novi Beograd 154,744 32 2.18 D-COMPANY DOO BABUŠNICA Babušnica 1.399,331 248 3.60 DRVOPROMET-KULA DOO BEOGRAD Beograd-Palilula 607,471 50 1.38 ELPOS DOO BEOGRAD Beograd-Voždovac 154,392 21 1.48 ENEL DOO BEOGRAD Beograd-Voždovac 476,334 34 1.25 ENEL DOO VALJEVO Valjevo 380,503 25 2.65 EP-BELT DOO LOZNICA Loznica 1,366,349 128 1.94 EUROMODUL DOO NOVA PAZOVA Stara Pazova 746,014 57 5.83 FEROMONT INŽENJERING DOO BEOGRAD Beograd-Voždovac 2,399,460 696 2.11 FORMAPHARM ENGINEERING GROUP DOO BEOGRAD Beograd-Palilula 1,361,966 82 2.67 FULLHOUSE OGILVY DOO BEOGRAD Beograd-Stari Grad 516,809 38 2.22 GASTEH DOO INĐIJA Inđija 647,369 104 1.25 GRINDEX DOO KIKINDA Kikinda 417,258 72 6.69 HDL DESIGN HOUSE DOO BEOGRAD Beograd-Vračar 298,132 74 2.63 HRANA PRODUKT DOO SALAŠ NOĆAJSKI Sremska Mitrovica 2,258,219 95 2.19 IBIS-INSTRUMENTS DOO BEOGRAD Beograd-Novi Beograd 755,954 34 1.65 IIB DOO BEOGRAD Beograd-Čukarica 140,673 27 1.55 INDAS DOO NOVI SAD Novi Sad-Grad 818,138 73 2.52 INOP DOO ŠABAC Šabac 110,860 28 1.82 KIM-TEC SERVIS DOO BEOGRAD Beograd-Palilula 94,982 27 2.08 MATIS DOO IVANJICA Ivanjica 2,191,035 306 2.60 MDS INFORMATIČKI INŽENJERING DOO BEOGRAD Beograd-Novi Beograd 1,029,849 50 1.28 MERA DOO ZRENJANIN Zrenjanin 272,827 75 3.37 METALFER DOO SREMSKA MITROVICA Sremska Mitrovica 4,327,469 42 39.20 MIKRO KONTROL DOO BEOGRAD Beograd-Savski Venac 599,882 43 1.90 MINEL GENERAL ELECTRIC DOO BEOGRAD Beograd-Novi Beograd 70,235 25 2.18 MONT-R DOO BEOGRAD Beograd-Čukarica 849,485 255 1.75 MPG PLUS DOO BEOGRAD Beograd-Zemun 258,864 33 3.60 PEKARA KIRĆANSKI ALEKSANDAR KIRĆANSKI PR BEOGRAD Beograd-Zvezdara 73,400 21 1.73 POL DOO BEOGRAD Beograd-Zvezdara 367,530 59 3.95 PROPULZIJA DOO BEOGRAD Beograd-Čukarica 125,849 22 3.21 PUBLIK DOO VALJEVO Valjevo 1,217,282 79 1.78 SAMEDI DOO VALJEVO Valjevo 556,941 156 3.18 SZR VRAČAR BRANISLAV VRAČAR PR NOVI SAD Novi Sad-Grad 687,683 48 1.60 TERMOENERGO INŽENJERING DOO BEOGRAD Beograd-Zvezdara 218,735 29 4.89 TERMOMETAL DOO ADA Ada 1.109,199 300 2.21 TODOROVIĆ DOO KRAGUJEVAC Kragujevac-Grad 166,203 26 1.71 UNIMER DOO KRUŠEVAC Kruševac 185,995 34 2.34 UNIPROMET DOO ČAČAK Čačak 2,981,014 279 2.23 VEGA IT SOURCING DOO NOVI SAD Novi Sad-Grad 217,886 43 5.75 VINARIJA KOVAČEVIĆ DOO IRIG Irig 251,499 23 1.93 WOOD MASTER DOO VALJEVO Valjevo 571,451 133 1.99 ZOMONT DOO BEOGRAD Beograd-Rakovica 219,977 46 1.95 12 Bisnode SM Bulletin April 2016 GAZELLE SERBIA
MACRO OVERVIEW OF THE ECONOMY SOUTHERN MARKETS GDP, UNEMPLOYMENT RATE, INFLATION 3.3% SLO 12.9% -0.7% HR UNEMPLOYMENT RATE GDP INFLATION 1.9% 18.5% -1.4% BIH RS GROWTH DECREASE 1.2% 17.9%* 1.5% ZERO GROWTH 0.2% data for the fourth quarter of 2015 no data for the selected period. Source: www.bisnode.si In the fourth quarter of 2015 SLOVENIA recorded the highest economic growth 3.3 PERCENT, while SERBIA still recorded the lowest growth 1.2 PERCENT. Compared to the third quarter of 2015, economic growth improved in all countries, most of all in BOSNIA AND HERZEGOVINA, by as much as 3.2 PERCENTAGE POINTS. In January CROATIA recorded the highest level of unemployment, namely 18.5 PERCENT, and Slovenia the lowest, at 12.9 PERCENT. According to the ILO data SERBIA recorded 17.9 PERCENT unemployment in the fourth quarter of 2015. Compared to the same period last year, unemployment in both SLOVENIA and CROATIA fell, while in SERBIA unemployment rose slightly. In February, only SERBIA recorded inflation, while in BOSNIA AND HERZEGOVINA, prices remained unchanged; on the other hand CROATIA and SLOVENIA recorded deflation. Compared to the same period the previous year, prices dropped most significantly in CROATIA, namely by 1.0 PERCENTAGE POINT. Prices only increased in SERBIA by 0.7 PERCENTAGE POINTS. GLOSSARY: GDP or gross domestic product is the market value of all final products and services created by the economy of a country in one year. Economic growth is measured as growth in gross domestic product (GDP) for the quarterly period. The infographic shows growth in the FOURTH QUARTER 2015 compared with growth for the third quarter of 2015. UNEMPLOYMENT RATE indicates the proportion of persons in the active population not in an employment relationship. Calculated according to two methodologies: survey-based unemployment (ILO) and registered unemployment. For Slovenia and Croatia, data on registered unemployment is provided, while ILO data is used for Bosnia and Herzegovina and Serbia, as no data on registered unemployment is available. The infographic shows data for JANUARY 2016 and the development trend compared to the same period last year. INFLATION marks the growth in the level of prices in general, while the inflation rate shows the change in the level of prices (annual index). The infographic shows data on annual inflation for FEBRUARY 2016 and the development trend compared to the same period last year. 14 Bisnode SM Bulletin April 2016 MACRO
MICRO OVERVIEW OF THE ECONOMY SOUTHERN MARKETS NEW BUSINESS START-UPS FEBRUARY 2016 The number of new business start-ups includes companies, private entrepreneurs and other legal forms of organisation engaged in economic activities. The infographic shows the share of all businesses less than one month old in total active economic subjects on southern markets at the monthly level, the absolute value for such, and the trend in growth compared to the same period the previous year. In February 2016, the largest number of companies were founded in SLOVENIA and the smallest in SERBIA. Compared to the same period last year, the number of new business start-ups fell in all countries, most notably in SERBIA. 902 1,792 1,470 688 1.90% 1.26% 0.96% 0.53% NUMBER OF NEW BUSINESS START-UPS TREND COMPARED TO THE SAME PERIOD OF THE PREVIOUS YEAR SHARE OF NEW BUSINESS START-UPS IN TOTAL ACTIVE ECONOMIC ENTITIES Source: www.bisnode.si In February, the largest share of new business start-ups was recorded in BOSNIA AND HERZEGOVINA 1.9 PERCENT, and the smallest still in SERBIA 0.53 PERCENT. This means that one new company was founded in BOSNIA AND HERZEGOVINA per 50 companies, while in SERBIA, the respective figure was one per 200 companies. DEREGISTRATIONS FEBRUARY 2016 The infographic shows the share of deregistrations of companies, sole proprietors and other legal entities performing economic activity in total active economic subjects on southern markets at the monthly level, the absolute value of such, and the trend of growth compared to the same period the previous year. In February, the largest number of deregistrations was recorded in CROATIA, at 1,695. Compared to the same period last year, the number of deregistered companies rose both in CROATIA and SLOVENIA. 1,695 1,458 1.11% 1.02% NUMBER OF DEREGISTRATIONS TREND COMPARED TO THE SAME PERIOD OF THE PREVIOUS YEAR SHARE OF DEREGISTRATIONS OF COMPANIES IN TOTAL ACTIVE ECONOMIC ENTITIES Source: www.bisnode.si In February, the highest share of deregistrations was recorded in CROATIA 1.11 PERCENT, which means that in CROATIA one company per every 90 was deleted, while the respective number in SLOVENIA was one per every 100 companies. MICRO Bisnode SM Bulletin April 2016 15
INSOLVENCY PROCEEDINGS FEBRUARY 2016 The infographic shows the share of insolvency proceedings for companies, sole proprietors and other legal entities performing economic activity in the southern markets in total active economic subjects against which an insolvency proceeding was initiated in the month concerned (bankruptcy, compulsory settlement, liquidation), the absolute value of such, and the trend of growth compared to the same period the previous year. The largest number of new insolvency procedures in February were initiated in SLOVENIA, and the least in CROATIA. Compared to the same period last year, the number of new insolvencies fell in SLOVENIA and CROATIA, while it rose in SERBIA. 393 264 205 0.28% 0.20% 0.13% NUMBER OF INSOLVENCY PROCEDURES TREND COMPARED TO THE SAME PERIOD OF THE PREVIOUS YEAR SHARE OF INSOLVENT COMPANIES IN TOTAL ACTIVE ECONOMIC ENTITIES Source: www.bisnode.si In February, the largest share of insolvencies was recorded in SLOVENIA 0.28 PERCENT, and the smallest in CROATIA 0.13 PERCENT. Thus in SLOVENIA one new insolvency proceeding was initiated per every 360 companies, in SERBIA one per every 490 companies and in CROATIA one per every 740 companies. BLOCKINGS FEBRUARY 2016 The infographic shows the share of companies, sole proprietors and other legal entities performing economic activity in the southern markets in total active economic subjects whose transaction accounts were blocked for at least one day in the month concerned, the absolute value and the trend of growth compared to the same period of the previous year. In February, the most blockings were recorded in SERBIA and the least in SLOVENIA. Compared to the same period last year, the number of blockings again fell in all countries, and falling most significantly in BOSNIA AND HERZEGOVINA. 14,016 31,539 20,799 9,522 29.57% 24.25% 13.64% 6.67% NUMBER OF BLOCKINGS TREND COMPARED TO THE SAME PERIOD OF THE PREVIOUS YEAR SHARE OF BLOCKINGS IN TOTAL ACTIVE ECONOMIC ENTITIES Source: www.bisnode.si In February, the largest number of blockings was recorded in BOSNIA AND HERZEGOVINA 29.57 PERCENT and the lowest in SLOVENIA 6.67 PERCENT. This means that in BOSNIA AND HERZEGOVINA every THIRD company was blocked, in SERBIA every FOURTH, in CROATIA every SEVENTH, and in SLOVENIA every FIFTEENTH. 16 Bisnode SM Bulletin April 2016 MICRO
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