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Linas Libikas, JTI General Manager For The Western Balkans

Stability, Transparency And Predictability More Needed Than Ever

The increase in foreign investments in Serbia over the last few years is a clear sign that multinational companies recognise Serbia as a stable...

Milena Argirović, MD, Country Head For Serbia, Montenegro, Albania, North Macedonia And Kosovo At Takeda

We Use Data And Digital To Improve Patients´Lives And Create Better Society

Last year was a very important one for Takeda in Serbia. It was a year ago that Takeda commemorated 10 years of operations in...

Senka Aleksić, Executive Director, Shared Mobility d.o.o.

How Kinto Join And Kinto Ride Protect The Planet

Shared Mobility is part of the start of the transformation of the automotive industry as a whole and the new mobility industry. Founded in...

EPSON

Monozukuri Is The Key To Sustainable Manufacturing

In a world where the word “innovation” is overused, it is easy to forget that some of the best ideas come from old traditions...

Konica Minolta

Innovative Solutions That Improve Life

Konica Minolta has been successfully operating in the Adriatic region for years, and its innovative solutions and business areas attract a large number of...

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

Why Japanese Companies Are Getting Serbian Addresses

After many years during which bilateral relations between Japan and Serbia were mainly nurtured through good political and cultural relations, the economic perspective is...

Comment by Zoran Panović

Confusion & Hypocrisy

American dictionary publisher Merriam-Webster declared “gaslighting” the word of the year for 2022, with the explanation that it reflects the current era of disinformation...

Boško Jakšić, Journalist

Is Kosovo Once Again Writing Serbian History?

In less than two months, the west deployed concentrated diplomatic fire that succeeded in bringing the most complex and enduring conflict in the Western...

Dragan Đukanović, Professor Of The University Of Belgrade Faculty Of Political Sciences

Who’s Playing The Kosovo Card?

Any worsening of the already poor relations between Belgrade and Priština could lead to something that would fundamentally threaten regional stability and enable actors...

Serbia’s Foreign Trade Increased By 31.1%

Last year Serbia's foreign trade goods exchange amounted to 66.6 billion euros and was 31.1 per cent higher than...

Djokovic’s Historic Australian Open Win Extends ‘Big Titles’ Lead

Novak Djokovic claimed a record-tying 22nd Grand Slam title on Sunday when he won the Australian Open, extending his...

Celebration Of Republic Day Of India

The Embassy of India India in Belgrade celebrated the 74th Republic Day of India on 26 January 2023 to commemorate the coming into...

Spectatular Mileston In First Boeing 767 Conversion In Europe Marked At Ceremony In JAT Tehnika

Avia Prime Group, one of the leading organizations for aircraft maintenance in Europe, consisting of three eminent companies including...

Ministry Of Mining And Energy And USAID Forge Energy Partnership

The Ministry of Mining and Energy (MoME) and the United States Agency for International Development (USAID) signed a Memorandum...

Serbia’s Foreign Trade Increased By 31.1%

Last year Serbia's foreign trade goods exchange amounted to 66.6 billion euros and was 31.1 per cent higher than...

Djokovic’s Historic Australian Open Win Extends ‘Big Titles’ Lead

Novak Djokovic claimed a record-tying 22nd Grand Slam title on Sunday when he won the Australian Open, extending his...

Celebration Of Republic Day Of India

The Embassy of India India in Belgrade celebrated the 74th Republic Day of India on 26 January 2023 to commemorate the coming into...

Spectatular Mileston In First Boeing 767 Conversion In Europe Marked At Ceremony In JAT Tehnika

Avia Prime Group, one of the leading organizations for aircraft maintenance in Europe, consisting of three eminent companies including...

Ministry Of Mining And Energy And USAID Forge Energy Partnership

The Ministry of Mining and Energy (MoME) and the United States Agency for International Development (USAID) signed a Memorandum...

Serbia’s Foreign Trade Increased By 31.1%

Last year Serbia's foreign trade goods exchange amounted to 66.6 billion euros and was 31.1 per cent higher than...

Djokovic’s Historic Australian Open Win Extends ‘Big Titles’ Lead

Novak Djokovic claimed a record-tying 22nd Grand Slam title on Sunday when he won the Australian Open, extending his...

Celebration Of Republic Day Of India

The Embassy of India India in Belgrade celebrated the 74th Republic Day of India on 26 January 2023 to commemorate the coming into...

Spectatular Mileston In First Boeing 767 Conversion In Europe Marked At Ceremony In JAT Tehnika

Avia Prime Group, one of the leading organizations for aircraft maintenance in Europe, consisting of three eminent companies including...

Ministry Of Mining And Energy And USAID Forge Energy Partnership

The Ministry of Mining and Energy (MoME) and the United States Agency for International Development (USAID) signed a Memorandum...
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