Sitemap

Regus

How the Hybrid Model Can Boost the Bottom Line

With a global network of around 4,000 locations spanning 1,100 towns and cities across more than 120 countries, Regus helps over eight million people...

Heineken

Brewing a Better World Together

From barley to bar, more than 150 years, we are committed to making a positive impact on the world around us. We are aware...

Luboš Berkovec, Mobi Banka Chief Operations Officer

Dedicated to Modern Banking

Mobi Banka has been dedicated to digital banking from the very beginning, in 2014. Stability and reliability forms the foundations of its business, as...

Miloš Lončar, Client Solutions Lead for SEE, Dell Technologies

Valued Partner to the Public Sector

Dell distinguishes itself as a pioneer in various domains of technology, including hybrid cloud solutions, cybersecurity, edge and high-performance computing, but also innovative social...

Vladimir Spasić, Dell Account Executive

E-services Ease Our Lives

As one of the leaders of the IT sector, and thanks to its wealth of experience and extensive network of partners, Dell is able...

Milan Nedeljković, Dean And An Associate Professor At FEFA, Belgrade

Risks Aren’t A Good Friend To Investment

Political risk and uncertainty aren’t good friends to a stimulating investment environment. As such, any rise in the perception of increased political risk for foreign investors in Serbia implies a reduction in their interest in investing in the country

During all periods of serious geopolitical disturbances, significant economic challenges and risks are faced by small, open economies like Serbia’s. In the event that the conflict in Ukraine becomes protracted, we can expect – regardless of Serbia’s commitment to sanctions against Russia – continued inflationary pressures and a slowdown in Serbia’s economic growth during 2022 and 2023. At the same time, the currently announced (according to the latest interest rate projections published by the U.S. Federal Reserve and the European Central Bank until 2024) tightening of monetary policy in developed countries will lead to tighter conditions for borrowing and servicing existing debt, which will have a negative impact on the budgets of households over the next two years, but also company balance sheets and investment decisions. In the case of the scenario that you mention in the form of sanctions imposed against Russia, I don’t think either decision would lead to a catastrophic scenario for the Serbian economy and a shortage of basic necessities.

In the event that the conflict in Ukraine becomes protracted, we can expect – regardless of Serbia’s commitment to sanctions against Russia – continued inflationary pressures and a slowdown in Serbia’s economic growth during 2022 and 2023

However, Political risk and uncertainty aren’t good friends to a stimulating investment environment. As such, any rise in the perception of increased political risk for foreign investors in Serbia implies a reduction in their interest in investing in the country, particularly now that the global liquidity cake is shrinking and investors are becoming even more selective in the decisions they make. And that’s the case whether it relates to foreign direct investment or portfolio investments that are also important for the functioning of the domestic financial market and financing the start-up community. On the flip side, the imposing of sanctions against the Russian Federation brings with it the risk of the terms of the gas arrangement being changed and the seventh largest market for exports of Serbian products and services (accounting for just under 5% of total exports in 2021) being lost. Thus, from an economic perspective, decision makers should have already implemented measures to minimise the negative implications of some of these risks materialising.

This implies credibly curbing inflationary pressures, through time-adjusted and limited increases in targeted fiscal levies/reducing certain tax burdens, and concerted efforts to improve the business environment. On the other hand, it is essential to launch new initiatives aimed at diversifying the country’s energy sources. All told, as with the fundamentals of finance, if we are aware that a risk exists, then it is necessary to hedge as soon as possible, if that hasn’t already been done on time.

Comment By Zoran Panovic

Consolidating Power

Vucic’s campaign (despite the elections not being presidential) is being conducted like crisis management. The aim is to convince his supporters, and even more...

Aleksandar Baucal Ph.D, full professor at the Faculty of Philosophy in Belgrade

What I’m Listening to and What’s Happening to Me

The key question for this election is the extent to which citizens will believe the image presented to them through the media more than...

Ana Stijiljkovic, Political Communication Consultant, Media and Communication Researcher, Loughborough University

Converting Dissatisfaction into Votes will be Challenging

The upcoming elections in Serbia will take place in an atmosphere devoid of free discussion or support for democratic choices from electoral institutions. And...

Bogdan Živkovic, historian

Serbia has Election Fatigue

Serbia enters the December election period in a remarkably calm mood, weary from overexploited political issues, passions and ideas. Nothing points to change. However,...

Serbia and Italy Sign Innovation Cooperation Agreements at Forum

At the Italy-Serbia Innovation Forum "Creating Business through Innovation," three agreements and a memorandum were signed, as announced by...

Minister Dačić Received the Ambassador of the Sovereign Order of Malta in a Farewell Visit

The First Deputy Prime Minister and Minister of Foreign Affairs of the Republic of Serbia, Ivica Dačić, received in...

CorD Magazine Celebrates 20 Years

alliance international media (AIM doo), the publisher of CorD Magazine, organized a celebration at the Aeroclub, marking the 20th anniversary of...

NALED: One of the First Open Innovation Projects in Serbia to Commence Soon

One of Serbia's first 'open innovation' projects is set to commence soon, offering scientific and research organizations a unique...

Serbia Acquires Historic WWII Directive Ordering Attack on Yugoslavia

The Government of the Republic of Serbia announced that, following its recent acquisition of a piece by Paja Jovanović...

Serbia and Italy Sign Innovation Cooperation Agreements at Forum

At the Italy-Serbia Innovation Forum "Creating Business through Innovation," three agreements and a memorandum were signed, as announced by...

Minister Dačić Received the Ambassador of the Sovereign Order of Malta in a Farewell Visit

The First Deputy Prime Minister and Minister of Foreign Affairs of the Republic of Serbia, Ivica Dačić, received in...

CorD Magazine Celebrates 20 Years

alliance international media (AIM doo), the publisher of CorD Magazine, organized a celebration at the Aeroclub, marking the 20th anniversary of...

NALED: One of the First Open Innovation Projects in Serbia to Commence Soon

One of Serbia's first 'open innovation' projects is set to commence soon, offering scientific and research organizations a unique...

Serbia Acquires Historic WWII Directive Ordering Attack on Yugoslavia

The Government of the Republic of Serbia announced that, following its recent acquisition of a piece by Paja Jovanović...

Serbia and Italy Sign Innovation Cooperation Agreements at Forum

At the Italy-Serbia Innovation Forum "Creating Business through Innovation," three agreements and a memorandum were signed, as announced by...

Minister Dačić Received the Ambassador of the Sovereign Order of Malta in a Farewell Visit

The First Deputy Prime Minister and Minister of Foreign Affairs of the Republic of Serbia, Ivica Dačić, received in...

CorD Magazine Celebrates 20 Years

alliance international media (AIM doo), the publisher of CorD Magazine, organized a celebration at the Aeroclub, marking the 20th anniversary of...

NALED: One of the First Open Innovation Projects in Serbia to Commence Soon

One of Serbia's first 'open innovation' projects is set to commence soon, offering scientific and research organizations a unique...

Serbia Acquires Historic WWII Directive Ordering Attack on Yugoslavia

The Government of the Republic of Serbia announced that, following its recent acquisition of a piece by Paja Jovanović...
spot_img