In Serbia, amidst ongoing inflation which has started to slow down over the past five months, salaries have recorded a slight real growth on an annual basis, but have seen a slight monthly decline due to seasonal reasons. Average gross and net wages for July 2023 increased by 14.6% nominally and 1.9% in real terms compared to the previous July, with the average gross salary being 115,664 dinars and the net salary at 83,781 dinars. The median net salary for July was 64,734 dinars, indicating that 50% of employees earned up to this amount. The average net salary in the public sector was 85,730 dinars, while it was 82,998 dinars outside the public sector. The lowest average salary was recorded by entrepreneurs and their employees, with a net salary of 42,566 dinars. Only employees in computer programming, consulting, and related activities had an average net salary over 200,000 dinars, while those in oil and gas extraction and air transport joined them with over 150,000 dinars. Analysts from Bloomberg Adria have highlighted that changes in workers' bargaining power and structural changes in the labor market have led to the fastest growth in average gross wages in the region over the last decade. Projections suggest that nominal gross wage growth will remain in the low double-digit area for some time, with a slowdown to single-digit growth rates possible in 2024.

PLAY (Iceland) received approval at its annual general meeting to increase its share capital by up to 1.2 billion shares and proceed with a cash injection from existing shareholders and a public offering of new shares. The offering includes one million shares at ISK4.50 per share for subscription commitments worth ISK4.5 billion from existing shareholders and other investors, and up to 111,111,112 shares at the same price in a public issue targeting up to ISK500 million, with priority for current shareholders in case of oversubscription.

IranAir, despite not being on the latest US sanctions list, faces a potential ban from flying to Europe by the G7 over allegations of Iran selling missiles to Russia. A senior US official warned of a swift and severe response if Iran provides Russia with ballistic missiles. IranAir currently operates flights to eight European destinations. Sanctions discussions have affected IranAir for years, including issues with aircraft purchases from Airbus and ATR due to the 2015 Iran nuclear deal and ongoing sanctions.

Asian migrant workers from countries like Nepal, India, the Philippines, Bangladesh, and Sri Lanka are filling the labor shortage in the Adria region. Despite seeking better lives, many face challenges, including fraudulent job offers and high recruitment fees. The article highlights the experiences of Anisha, a Nepalese worker in Serbia, and the practices of her employer, La Chicken House, part of La grupa, which provides good living conditions and regular pay. The article also discusses the significant increase in work permits issued in Serbia and other Adria region countries, the reliance on foreign labor, and the challenges and changes in employment practices, including the need for better integration and accommodation for foreign workers. The article was written with the help of Janja Zalar from Slovenia and Edita Vlahović Žuvela from Croatia.

On Monday, shares of tourism companies rose, driving the largest European stock market indices into positive territory as data indicates that inflation is slowing down more rapidly. Inflation in the Eurozone is expected to fall below the targeted two percent by early 2025, earlier than the European Central Bank's predictions. However, ECB Vice President Luis de Guindos warned that inflation could temporarily accelerate again due to the base effects of last fall's sharp increase in energy and food prices. The Euro Stoxx 50 index increased by 0.73 percent, while the Stoxx Europe 600 grew by 0.75 percent. The German DAX strengthened by 0.67 percent, the French CAC 40 by 0.63 percent, and the Italian FTSE MIB by 1.43 percent, thanks to banks. The Bloomberg Dollar Spot Index remained largely unchanged, as did the euro at a value of 1.0693 to the dollar. Overall, the best-performing stocks in the European capital markets were in the travel industry, with a jump of 1.7 percent.

On Monday, shares of tourism companies rose, driving the largest European stock market indices into positive territory as data indicates that inflation is slowing down more rapidly. Inflation in the Eurozone is expected to fall below the targeted two percent by early 2025, sooner than the European Central Bank's predictions. However, ECB Vice President Luis de Guindos warned that inflation could temporarily accelerate again due to the base effects of last fall's sharp increase in energy and food prices. The Euro Stoxx 50 index increased by 0.73%, while the Stoxx Europe 600 grew by 0.75%. Germany's DAX strengthened by 0.67%, France's CAC 40 by 0.63%, and Italy's FTSE MIB by 1.43%, thanks to banks. The Bloomberg Dollar Spot Index remained largely unchanged, as did the euro at a value of 1.0693 against the dollar. Overall, the best-performing stocks in the European capital markets were in the travel industry, with a jump of 1.7%.

For the second consecutive month, tourist arrivals in Serbia from Turkey have surpassed those from Russia since the beginning of the year, with Turkish visitors typically staying for shorter periods. The increase in Turkish arrivals has been influenced by a visa-free regime between the two countries, the general recovery of travel, and more flights between Belgrade and Istanbul. In September alone, Serbia saw 25,083 Turkish visitors compared to 14,126 Russians. The trend of Turkish surpassing Russian arrivals began in May, but it was not until August that the cumulative number of Turkish arrivals for the year exceeded Russian arrivals. This could be attributed to the increased number of flights and the visa-free regime introduced last year. Despite the increase, Turkish visitors choose shorter stays in Serbia compared to Russians, with 381,716 overnight stays recorded for 151,310 Turkish guests versus 508,412 overnight stays for 129,785 Russian arrivals. Overall, Serbia welcomed 1.6 million tourists in the first nine months of the year, a 24% increase year-on-year, with the most significant growth from China (317.7%) as it continues to recover post-pandemic.

For the second consecutive month, tourist arrivals from Turkey to Serbia have surpassed those from Russia since the beginning of the year, with Turkish visitors typically staying for shorter periods. Factors contributing to the increase in Turkish arrivals include a visa-free regime between the two countries, the general recovery of travel, and more flights between Belgrade and Istanbul. Despite the increase, Russian tourists have recorded more overnight stays than Turkish tourists. Overall, Serbia has seen a 24% annual increase in tourist arrivals, with the most significant growth from China. While the total number of tourist arrivals in Serbia increased by 3.3% year-on-year in September, the number of overnight stays decreased by 9.5%.

Serbia is likely facing another round of snap elections and is planning to issue a variety of bonds, both corporate, supported by the state, and government, to finance EXPO 2027, with a planned expenditure of 200 million euros this year alone. The Fiscal Council warned that not all reports confirming the economic and social viability of EXPO have been published. Despite inflation slowing in Serbia, consumers are penalizing the food industry for high prices. The European Central Bank decided not to increase interest rates this month, but President Christine Lagarde cautioned that the fight against inflation is not over. Corporate earnings reports from companies like Meta and Mercedes influenced market trends, with major indices falling and U.S. Treasury yields hitting 5% for the first time since 2007. The 'magnificent seven' tech companies saw disappointing results, erasing $200 billion in market value. Bitcoin's price surged, and renewed conflict in Gaza affected oil markets. Nidec's shares fell after earnings reports, and Greenpeace indicated Japan lags behind Germany in transitioning to electric vehicles. Serbian tourism showed significant growth, with the reopening of Sava Center and expanded culinary offerings expected to boost visitor numbers. Tennis star Maria Sharapova realized the business aspect of sports, and celebrity chef Jamie Oliver is set to open a restaurant in Belgrade.

European stocks have seen a slight increase the day before the European Central Bank's (ECB) interest rate decision, with investors monitoring comments from central bankers, analysts, and company earnings on the stock exchange. ECB President Christine Lagarde expressed satisfaction with the progress in combating inflation through monetary policy but remains concerned about fiscal measures. Due to persistent inflation, strategists from companies like Commerzbank, Barclays, and UBS Group warned that the ECB might unexpectedly raise the minimum reserve requirements (MRR) this week to reduce costs and absorb excess liquidity. Most analysts surveyed by Bloomberg expect an MRR increase within the next 12 months, with Barclays and Commerzbank suggesting a potential rise to two percent this week. The Euro Stoxx 50 index gained 0.18%, while the Stoxx Europe 600 was up 0.02% at the end of trading. Germany's DAX increased by 0.11%, the UK's FTSE 100 by 0.36%, and France's CAC 40 by 0.29%, but Italy's FTSE MIB fell by 0.47%. Retail company stocks fared the worst, while insurance stocks rose.

Serbia recorded the highest growth in the tourism industry in the region for 2022, driven by increased prices in an inflationary environment, a larger tourist offer, and a recovery in demand post-pandemic. The country saw a 7.2% increase in overnight stays, largely due to an influx of Russian tourists following the war in Ukraine and a rise in business and conference tourism. Bosnia and Herzegovina followed with a 4.3% growth. Compared to 2019, tourist overnight stays have recovered in Slovenia and Croatia, but Serbia exceeded its pre-pandemic numbers with a 21.8% increase, while Bosnia and Herzegovina and North Macedonia have not yet reached their 2019 figures. Revenue from foreign tourists in the region grew by 30% in 2022, with Serbia experiencing a 55% increase compared to 2021 and a 72.3% increase compared to 2019. Croatian tourism remains dominant, accounting for 65% of total overnight stays and 78% of total revenue in the region. The sector's largest companies, including Delta Hospitality and MK Mountain Resort, showed signs of recovery, with a median sales growth of nearly 77%. Despite the sales growth, profitability levels measured by EBITDA and EBIT margins saw a significant decline in 2022 compared to the pre-pandemic period. The tourism industry has seen significant investments totaling €680.5 million over the past four years, with four Croatian companies leading, particularly Valamar with investments worth €263 million. The labor market in the sector has seen wage growth outpacing the general level, but wages, especially for auxiliary staff, remain relatively low.

The most expensive car driven on Serbian streets this year is a Ferrari SF90 Spider, valued at over 700,000 euros, topping the list of the most expensive cars in the region compiled by Bloomberg Adria. The car, a 2022 model with an approximate value of 708,480 euros, is the brand's first series-production hybrid with a retractable roof. It carries Belgrade license plates and is equipped with the 'assetto fiorano' racing package. The Serbian Customs Administration reported the vehicle's value at 590,000 euros before taxes. The top 10 list includes two Ferraris, along with Bentley, Lamborghini, and Audi. The second Ferrari, a model 812 GTS, found a buyer in Belgrade. A luxury Maserati GranTurismo Trofeo Primaserie, one of only 75 of its kind and priced at 289,071 euros, remains unsold and unregistered.

The gastro-market trend is gaining momentum in Belgrade, with new social habits influencing food preferences. Factors such as time constraints, attractive prices for new experiences, and informal atmospheres have popularized gastronomic markets. These markets offer a variety of tastes and ingredients, allowing people to experience different culinary traditions. In Belgrade, the Zemun Market's Pretop restaurant, focusing on fresh bread, pork, and champagne, exemplifies this trend. The trend includes exclusive market locations and is expected to continue with the development of a new conceptual market at Belgrade Waterfront. Michelin has recognized the quality of street food by including food kiosks in its star-rated restaurant list, highlighting the global recognition of this culinary movement.

Pharmaceutical company Galenika confirmed the acquisition of the Serbian-Slovenian company Lifemedic, aiming to expand the portfolio of its Brazilian owner, NC Group, in the region. Galenika will own 100% of Lifemedic shares, gaining exclusive distribution of Pharmalife Research's products in Serbia, Bosnia and Herzegovina, Macedonia, and Montenegro. The transaction is expected to be completed by the end of Q4 2023, pending antitrust approvals. Lifemedic distributes natural supplements and has partnerships with over 5,000 pharmacies. Ricardo Vian Marques, CEO of Galenika, highlighted the acquisition as a step towards international expansion and commitment to investment and innovation.

Pharmaceutical company Galenika confirmed the acquisition of the Serbian-Slovenian company Lifemedic, aiming to expand its portfolio and regional presence under the ownership of Brazil's NC Group. The deal includes 100% of Lifemedic's shares and exclusive distribution rights for Pharmalife Research's products in Serbia, Bosnia and Herzegovina, Macedonia, and Montenegro. The transaction is expected to be finalized by the end of Q4 2023, pending antitrust approvals. Lifemedic distributes natural supplements and has partnerships with over 5,000 pharmacies. The acquisition is part of Galenika's internationalization strategy and commitment to innovation, with plans to build new factories by 2025.

Pharmaceutical company Galenika confirmed the acquisition of the Serbian-Slovenian company Lifemedic, signaling further investments and portfolio expansion by Galenika's Brazilian owner, NC Group, in the region. Galenika will own 100% of Lifemedic, taking over exclusive distribution of Pharmalife Research products in Serbia, Bosnia and Herzegovina, North Macedonia, and Montenegro. The transaction is expected to be completed by the end of Q4 2023, pending antitrust approvals. Ricardo Vian Marques, General Manager of Galenika, highlighted the acquisition as a step towards internationalization and commitment to investment and innovation. Lifemedic, with revenues of €4.6 million in 2022, has been distributing natural supplements and has partnerships with over 5,000 pharmacies. Zoran Stanimirović, General Manager of Lifemedic, anticipates additional value and expansion from the acquisition.

Expo 2027, to be held in Belgrade, Serbia, is seen as a significant opportunity for economic development and regional cooperation. The event is expected to attract 2.5 million visitors, with a total economic impact estimated at 1.1 billion euros. The Serbian Chamber of Commerce, along with other regional economic chambers, anticipates benefits such as increased tourism, job creation, and overall economic growth. The construction sector is expected to gain the most, with major infrastructure projects planned ahead of the exhibition. However, experts caution that the success of the event depends on effective management and the ability to attract foreign visitors. The Expo is also seen as a chance to showcase the region's openness to innovation and cooperation. Air Serbia is expected to benefit from the influx of visitors, and the hospitality sector is preparing for the increased demand. The article also discusses the potential long-term impact of the Expo on urban development, comparing it to previous international exhibitions.

Despite trading up on Friday, the S&P 500 index fell over two percent on a weekly basis after the Federal Reserve announced further interest rate hikes earlier in the week. Bond yields surged to their highest level since 2007 during the day. The Dow Jones Industrial Average lost 0.14 percent, while tech stocks held up on the day iPhone 15 sales began, with the Nasdaq 100 gaining 0.45 percent. Ford Motor Co. was among the biggest gainers after reaching an agreement with a striking union. Chinese companies listed in the US had a good day following news that the world's two largest economies are creating working groups for economic and financial cooperation. Ten-year US Treasury yields fell after temporarily climbing above 4.5 percent for the first time since 2007. Market traders remain very concerned about inflation and monetary policy amid recent oil price hikes and signals from the Federal Reserve that interest rates will not be falling soon, according to market analyst Fawad Razaqzada.

Following the European Central Bank's decision to increase interest rates to combat persistent inflation, the euro fell against the dollar. Some analysts, including Robin Brooks of the International Institute of Finance, criticized the move as counterproductive. The ECB raised deposit rates to four percent, main refinancing operations to 4.5 percent, and marginal lending facilities to 4.75 percent. ECB President Christine Lagarde stated that future rate hikes would depend on incoming data. J.P.Morgan analysts, led by Meera Chandan, predicted the euro could fall to 1.02 against the dollar if the economy weakens further. Bond yields in the Eurozone fell, with German and Italian government bonds experiencing a drop in yields, indicating potential economic concerns.

During the pandemic, rental houses with pools became a popular investment, serving as private retreats from urban environments. However, inflation and rising living costs have impacted tourism in Serbia, with IT companies cutting back on team-building events at such properties. Airbnb's stock has seen significant growth since its IPO in late 2020, despite recent declines. Despite the downturn, Marko Milićević, owner of two rental houses in Bački Čurug, is expanding his business, citing sustained interest in rural tourism. His property, Čuružanka, caters to large celebrations and has received positive feedback from the local community.

Air Serbia has transported the same number of passengers by the end of August as it did in the entire year of 2022, despite facing industry challenges such as flight delays, labor shortages, and adverse weather conditions. The company expects to surpass the pre-pandemic record of 2.81 million passengers from 2019 in the first week of September. Executive Director Jiri Marek highlighted the summer season's challenges but also noted record-breaking passenger numbers to over 80 destinations worldwide. The Ministry of Construction, Transport and Infrastructure pressured the Belgrade airport concessionaire, Vinci, to address the labor shortage. Popular destinations included Tivat, Podgorica, Zurich, Paris, Amsterdam, Istanbul, Larnaca, Athens, Barcelona, and New York.