Sitemap

Vlastimir Vuković, Chief Executive Officer Of NLB Komercijalna Banka

Faster, More Efficient, And Closer To Clients

NLB Komercijalna Banka has defended its market leader position in the area of agricultural loans and in providing unconditional support to farmers. The economy...

Huawei Technologies d.o.o.

Innovative Storage Also Combats Ransomware

In the increasingly intricate landscape of security concerns, Huawei has stepped up with an ingenious solution that represents a cornerstone in the fight against...

OTP Banka Srbija

Commitment To Excellence

In the dynamic landscape of the Serbian banking scene, one institution stands out as a beacon of excellence and innovation: OTP banka Srbija. As...

Marijanti Babić, Country Head At Rio Tinto, Project Jadar

Jadar Is An Exceptional Project

Serbia’s Jadar Valley is home to a high-quality deposit of lithium – a metal that’s critical to the global transition to a more sustainable...

Ivanka Stojnić, Sustainability Manager For The Southeast European Market At Nestlé

Regenerative Agriculture As A Key Sustainable Practice

Nestlé Serbia, as the first Nestlé company in the region, has begun applying regenerative agriculture practices and continues to expand the number of domestic...

Branimir Jovanović, Economist, The Vienna Institute For International Economic Studies

Balancing Between East And West Comes At A Cost

Whether Serbia will emerge as a winner of the nearshoring trend over the coming years will depend primarily on political developments. If Serbia stays with the EU, that may well happen

The war in Ukraine is likely to accelerate the nearshoring trend. One of the reasons nearshoring has been gaining momentum in recent years has been geopolitical tension (mainly related to China), and the war in Ukraine only adds to that. Our research has shown that the Western Balkan economies are among the first nearshoring options for German companies, due to their geographical proximity, availability of labour and low wages, but also for cultural reasons and due to the good reputation of Balkan workers. And Serbia has managed to establish itself as the region’s economic leader, attracting more than half of all FDI in the region over the last 10 years, with average FDI inflows of around 7% of its GDP in recent years, even during the pandemic. So, taking all this into consideration, one could conclude that Serbia is indeed likely to benefit from the reshuffling of the global economy that is set to come in the years ahead.

However, Serbia is facing one major challenge that brings all of this into question. That challenge relates to its policy of balancing between East and West, which will be very difficult to maintain in the coming period. Serbia is among the very few European countries that haven’t imposed sanctions on Russia (together with Bosnia-Herzegovina, Turkey and Belarus).

Our research has shown that the western Balkan economies are among the first nearshoring options for German companies, due to their geographical proximity, availability of labour and low wages, but also for cultural reasons and due to the good reputation of Balkan workers

This is not viewed very favourably by the EU, because it undermines EU efforts to ensure Russia is made accountable for its actions. It seems that the EU is letting this go unpunished for now, but strong diplomatic pressure has been applied and it is highly likely that Serbia will soon be given an ‘us or them’ choice. If that happens and Serbia decides to turn its back on the EU and side with Russia, that will lead to significant economic losses for Serbia.

Yes, Russia is an important economic partner for Serbia – with four per cent of Serbian exports heading to Russia and seven per cent of Serbian FDI coming from Russia – and Serbia did indeed receive a favourable price for Russian gas several months ago, which saves the country around 300 million euros, according to President Vučić. However, this is dwarfed by what Serbia gains from the EU – with around two-thirds of Serbian exports heading to the EU and just as much FDI coming to Serbia from EU member states. And Serbia also received around €1.5 billion from the EU budget during the 2014-2020 period, via IPA II funds.

So, whether Serbia will emerge as a winner of the nearshoring trend over the coming years will depend primarily on political developments. If Serbia stays with the EU, that may well happen.

Comment

New Approaches Reinforce Economic Growth

Announced easing inflation and faster economic growth hints at the possible accelerating of economic activity. This in turn creates room for the Government of...

Comment By Zoran Panović

From Thessaloniki to Athens

A flatbread may well have cost a dinar in Thessaloniki, but – when it comes to EU membership – Thessaloniki is a hundred flatbreads...

Stevo Pendarovski, President of North Macedonia

Long Wait Leads to Falling Support

It goes without saying that EU membership candidate states have to show visible results in the reform processes by meeting the membership criteria, but...

H.E. Cathy Buggenhout, Belgian Ambassador to Serbia

Serbia’s Place is in the EU

I personally believe that there’s never been a more urgent need to have a strong, meaningful and result-oriented dialogue between the EU Member States...

Ambassador Konrad: Serbia Eyes EU Lead Role Amid Challenges

Germany's Ambassador Anke Konrad has declared that Serbia possesses all the prerequisites to lead in the EU integration process...

EU Energy Landscape Shifts: Russian Imports Plummet, Diversification Rises

After a robust increase in energy imports between 2021 and 2022, the landscape within the European Union significantly shifts...

Volvo to Phase Out Diesel: Shifts Gears Towards Full Electric by 2024

Volvo will cease the production of all remaining diesel models by the beginning of 2024 as it fully pivots...

Human Capital Is The Foundation Of Development

We believe that the future BIO4 ecosystem will help with the growth of GDP, the reducing of unemployment and...

Eighth Italian-Serbian Film Festival Celebrates Cinematic Bonds

The eighth Italian-Serbian Film Festival has been ceremoniously inaugurated with the premiere of the Italian-American feature "Tell It Like...

Ambassador Konrad: Serbia Eyes EU Lead Role Amid Challenges

Germany's Ambassador Anke Konrad has declared that Serbia possesses all the prerequisites to lead in the EU integration process...

EU Energy Landscape Shifts: Russian Imports Plummet, Diversification Rises

After a robust increase in energy imports between 2021 and 2022, the landscape within the European Union significantly shifts...

Volvo to Phase Out Diesel: Shifts Gears Towards Full Electric by 2024

Volvo will cease the production of all remaining diesel models by the beginning of 2024 as it fully pivots...

Eighth Italian-Serbian Film Festival Celebrates Cinematic Bonds

The eighth Italian-Serbian Film Festival has been ceremoniously inaugurated with the premiere of the Italian-American feature "Tell It Like...

Singapore Overtakes Hong Kong as World’s Freest Economy After 53 Years

Singapore has dethroned Hong Kong to become the world’s freest economy, according to a report by the Canadian Fraser...

Ambassador Konrad: Serbia Eyes EU Lead Role Amid Challenges

Germany's Ambassador Anke Konrad has declared that Serbia possesses all the prerequisites to lead in the EU integration process...

EU Energy Landscape Shifts: Russian Imports Plummet, Diversification Rises

After a robust increase in energy imports between 2021 and 2022, the landscape within the European Union significantly shifts...

Volvo to Phase Out Diesel: Shifts Gears Towards Full Electric by 2024

Volvo will cease the production of all remaining diesel models by the beginning of 2024 as it fully pivots...

Eighth Italian-Serbian Film Festival Celebrates Cinematic Bonds

The eighth Italian-Serbian Film Festival has been ceremoniously inaugurated with the premiere of the Italian-American feature "Tell It Like...

Singapore Overtakes Hong Kong as World’s Freest Economy After 53 Years

Singapore has dethroned Hong Kong to become the world’s freest economy, according to a report by the Canadian Fraser...
spot_img