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Carlos Puglia, Galenika Executive Director For Sales And Marketing

We Are Ready For Global Goals

As part of Grupo NC, one of the largest conglomerates in Brazil, Galenika is a company that operates on the global market. Its focus...

Aleksandar Cicmil, Promont Group and Dejan Pejčinović, Movenpick Fruške Terme

In The Company Of The Best – Serbian Hospitality With International Standards!

Hotel Fruške Terme has become the first hotel of Mövenpick Hotels & Resorts in Serbia and part of the AccorHotels group, which represents a...

Vladimir Spasić, Account Executive, Dell Technologies

We’re Becoming A Digital Society

With its digital solutions, products and services, Dell Technologies advances the operations and business processes of the companies with which it cooperates, while the...

Tijana Elez, MPC Properties Finance Director

Constructing And Managing A Brighter Future

Investment is an essential element of doing business successfully, and MPC Properties continues to make intelligent investments across its entire portfolio, in both business...

Tivat Tourism Organization

Luxury & Green

The Montenegrin coastal town of Tivat was declared one of the ten most colourful conference locations in 2021, in category M - up to...

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 By Zoran Panović

Year Of Turmoil

Vučić’s influence over political gravity on the quantum vacuum of Serbia’s multiparty system could, in the best-case scenario, redefine and strengthen the politics of...

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

The EU And The Western Balkans Still Need Each Other

The importance of the Western Balkans is primarily strategic and political. If the EU pushes the region away, it will turn towards Russia and...

Dr Duško Lopandić Ph.D., Vice President Of The European Movement In Serbia

Third Round Of Euro Integration?

The need to accelerate Ukraine’s EU integration, coupled with incentives to fortify the union’s international geopolitical “might”, as well as the general influence and...

Vukan Marković, University Of Belgrade, Institute For Philosophy And Social Theory; Cambridge University Ph.D. Student

EU Enlargement Is Back In Focus

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55th International Car Show Opened

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Serbia Is Spain’s Main Foreign Trade Partner In The Western Balkans

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Đukanović And Milatović In The Second Round Of Presidential Elections In Montenegro

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Dragan Džajić The New President Of The Football Association Of Serbia

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55th International Car Show Opened

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Serbia Is Spain’s Main Foreign Trade Partner In The Western Balkans

Serbia is the main foreign trade partner of Spain in the Western Balkans and is responsible for more than...

Đukanović And Milatović In The Second Round Of Presidential Elections In Montenegro

According to preliminary data from the Montenegrin Monitoring Center (CeMI), based on 95.5 per cent of the processed sample,...

In 2022 Norway Earned Five Times More From The Sale Of Oil And Gas

In 2022, Norway earned five times more from the sale of oil and gas compared to previous years, thanks...

Dragan Džajić The New President Of The Football Association Of Serbia

Dragan Džajić, one of the best football players from this area of ​​all time, was elected unanimously, with 78...

55th International Car Show Opened

The International Car Show, 55th in a row, opened in Belgrade and has gathered 250 exhibitors who will present...

Serbia Is Spain’s Main Foreign Trade Partner In The Western Balkans

Serbia is the main foreign trade partner of Spain in the Western Balkans and is responsible for more than...

Đukanović And Milatović In The Second Round Of Presidential Elections In Montenegro

According to preliminary data from the Montenegrin Monitoring Center (CeMI), based on 95.5 per cent of the processed sample,...

In 2022 Norway Earned Five Times More From The Sale Of Oil And Gas

In 2022, Norway earned five times more from the sale of oil and gas compared to previous years, thanks...

Dragan Džajić The New President Of The Football Association Of Serbia

Dragan Džajić, one of the best football players from this area of ​​all time, was elected unanimously, with 78...
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