The flourishing trade between Serbia and Switzerland demonstrates the strength and mutual benefits of the two countries’ bilateral ties, presenting promising opportunities for deeper cooperation and sustained economic growth
Serbia recently became Switzerland’s 4th largest partner, boasting a total trade volume of 1.2 billion euros and a surplus of 151.6 million euros on the Serbian side. These figures are truly remarkable and illustrate the strong bilateral relationship between the two countries, while also highlighting the potential for further progress.
Serbia recently became Switzerland’s 4th largest partner, boasting a total trade volume of 1.2 billion euros and a surplus of 151.6 million euros on the Serbian side. These figures are truly remarkable and illustrate the strong bilateral relationship between the two countries, while also highlighting the potential for further progress.
This success can be primarily attributed to Serbia’s rapid growth in the ICT sector, which represents its fastest-growing industry. By seamlessly integrating into global ICT value chains and capitalising on the software outsourcing boom, Serbia has established a robust international presence. Serbian IT companies have gained a reputation for delivering top-quality services, thanks to their highly skilled IT specialists and cost-effectiveness.
However, in order to ensure continued economic growth and prosperity, and to strengthen collaboration with Swiss business partners, it is essential for Serbia to address crucial challenges and unlock its full potential.
Firstly, there is a need to tackle the shortage of skilled labour. While Serbia boasts a robust education system, it is necessary to align it more closely with the needs of the labour market. Surveyed Swiss companies operating in Serbia have stressed the importance of creating a workforce that drives productivity growth and fosters economic development.
Harnessing Swiss expertise in the realm of dual vocational education offers a promising route to foster economic growth and prosperity
Secondly, a persistent youth unemployment rate of 26.5% remains a concern. Targeted policies are required to provide young people with a proper education and enable their swift entry into the labour market, thus contributing to economic growth.
Furthermore, increasing labour force participation is a challenging task in an economy that’s experiencing comparatively low activity compared to the OECD average. Encouraging more people to actively participate in the labour market, which can serve to boost productivity and fuel economic growth, requires measures like improving labour market flexibility and enhancing job matching mechanisms.
Additionally, Serbia’s stagnating productivity – at both the level of labour and within SMEs – influences wage growth and the appeal of the domestic labour market to young Serbs. Encouraging innovation, investing in research and development and supporting SMEs can revitalise productivity and stimulate economic growth.
In an effort to address these challenges, Swiss development support encompasses assistance to Serbia’s governance, economic and environmental sectors. Moreover, collaboration on dual vocational education has proven vital in terms of aligning workforce training with the needs of the market, leading to enhanced labour and company productivity, higher salaries and addressing the key driver of emigration: a lack of economic opportunity. Leveraging Swiss expertise in this collaboration presents a promising pathway to overcome these challenges and pave the way to further economic growth and prosperity.