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Chartwell International School

Safe And Structured, Yet Uplifting

Chartwell International School prides itself on being one of the longest-standing private schools in Serbia, which has been striving continuously towards distinction and excellence...

Radovan Terzić, CEO, Moja Soba d.o.o.

Masters Of Luxury

Bedroom furniture company Moja Soba began with just four employees, while it today boasts more than 120 workers producing around 2,000 beds and...

Marko Divljan, Managing Director, Invenio

Decades Of Experience Testify About Us

Invenio has spent more than 30 years dedicated to the development of quality control for its customers. This compay is present in every stage...

Đorđe Popović, Director, Resalta

Solar Market Set To Grow

Resalta was founded in 2011 with the aim of becoming the leading provider of energy services in the region. A decade later it had...

Dušanka Talić M.Sc, General Manager, GrECo International

Fusing Tradition And Innovation

Whether the issue is classic risks or current ones like cyber risks, risks facing financial institutions, risks in agriculture or some other risks, you...

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 Panović

Shipping Containers In The Council Of Europe

When it comes to the present and future of Kosovo, there are two outcomes that are fairly certain: It’s highly unlikely that Kosovo as...

Despot Kovačević, Assistant Professor At The University Of Belgrade’s Faculty Of Political Science

New Leaders Operate In A Very Constricted Space

In order for a change in leadership to occur, it is necessary to satisfy an array of internal and external factors. When it comes...

Dejan Vuk Stanković, Political Scientist And Political Analyst

New Leaders Are Born When The Public Has Had Its Fill Of Old Ones

Montenegrin president-elect Jakov Milatović, influential europe now movement leader milojko spajić and Montenegrin PM Dritan Abazović are just “children of fortune”. They have no...

Zdravko Veljanov, Ph.D. Candidate Doctoral School Of Political Science, Public Policy And International Relations, Central European University

Breaking Barriers: The Promise Of A Fresh Start In Montenegro

In order to maintain his position and succeed in upcoming elections, the new president-elect must focus on improving his party’s capacities. This involves absorbing...

Statement By The Spokesperson Peter Stano On The Latest Tensions And Clashes in Kosovo

European Union strongly condemns the clashes involving Kosovo police and protesters in the north of Kosovo, initiated by the...

Armenia And Azerbaijan Agree On Mutual Recognition Of Territorial Integrity

Armenia and Azerbaijan have agreed on mutual recognition of territorial integrity, Armenian Prime Minister Nikol Pashinyan announced at the...

Solar Power Due To Overtake Oil Production Investment For First Time -IEA

Investment in clean energy will extend its lead over spending on fossil fuels in 2023, the International Energy Agency...

Introducing First Ever Regional Publication

In the year commemorating 20 years of CorD Magazine it is our great pleasure to announce an exclusive regional publication...

Strengthening Cooperation In Field Of ICT With Qatar

Minister of Information and Telecommunications Mihailo Jovanovic and Minister of Communications and Information Technology of the State of Qatar...

Statement By The Spokesperson Peter Stano On The Latest Tensions And Clashes in Kosovo

European Union strongly condemns the clashes involving Kosovo police and protesters in the north of Kosovo, initiated by the...

Armenia And Azerbaijan Agree On Mutual Recognition Of Territorial Integrity

Armenia and Azerbaijan have agreed on mutual recognition of territorial integrity, Armenian Prime Minister Nikol Pashinyan announced at the...

Solar Power Due To Overtake Oil Production Investment For First Time -IEA

Investment in clean energy will extend its lead over spending on fossil fuels in 2023, the International Energy Agency...

Introducing First Ever Regional Publication

In the year commemorating 20 years of CorD Magazine it is our great pleasure to announce an exclusive regional publication...

Strengthening Cooperation In Field Of ICT With Qatar

Minister of Information and Telecommunications Mihailo Jovanovic and Minister of Communications and Information Technology of the State of Qatar...

Statement By The Spokesperson Peter Stano On The Latest Tensions And Clashes in Kosovo

European Union strongly condemns the clashes involving Kosovo police and protesters in the north of Kosovo, initiated by the...

Armenia And Azerbaijan Agree On Mutual Recognition Of Territorial Integrity

Armenia and Azerbaijan have agreed on mutual recognition of territorial integrity, Armenian Prime Minister Nikol Pashinyan announced at the...

Solar Power Due To Overtake Oil Production Investment For First Time -IEA

Investment in clean energy will extend its lead over spending on fossil fuels in 2023, the International Energy Agency...

Introducing First Ever Regional Publication

In the year commemorating 20 years of CorD Magazine it is our great pleasure to announce an exclusive regional publication...

Strengthening Cooperation In Field Of ICT With Qatar

Minister of Information and Telecommunications Mihailo Jovanovic and Minister of Communications and Information Technology of the State of Qatar...
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