When Germany And China Sneeze…

Will Serbia feel the ramifications of the rupturing of global production chains and the fleeing of investors from developing countries?

The automotive sector in Serbia could become a litmus test for assessing whether the country will continue to be included in European production chains, especially German ones, or whether the current exposure of the European economic space is a signal for the diversification of investors and more intensive consideration regarding the strengthening of domestic production

A large number of international analysts expect the rupturing of global production chains that occurred during the Covid-19 pandemic will influence the decisions of investors to automate their production and seek collaborators closer to home. This trend is expected to strengthen the already existing effects of business policy reconfiguration resulting from climate change and the trade war between the U.S. and China, which is leading to deglobalisation.

We asked our interlocutors whether they expect that the flight of capital from developing countries that was registered during the pandemic will have ramifications for Serbia, as a country that had only just begun joining large production chains in the previous period.

Although it is too early to provide a prognosis, it seems likely that caution will increase among companies considering Serbia as an investment destination. Consequently, issues of market attractiveness, competitiveness and a well-ordered business environment will gain additional importance.

Marko Čadež, President, CCIS

We Have Reason For Both Optimism And Caution

It is encouraging that half of the domestic companies are planning to continue investing in equipment and basic resources and that large foreign companies...

Igor Vijatov, Director of the Serbian Automotive Cluster

No Fleeing Of Automotive Industry Investors

Although the world automotive industry has been hit hard by Covid-19, we have no reason to believe that factories representing parts of large global...

Jovan Protić, National Coordinator for Serbia at the ILO

First Health, Then Production

The extent to which the Serbian economy will be hit by disruptions to supply chains will depend primarily on the speed of curbing the...

Mahmud Bušatlija, foreign investment expert

We Cannot Remain Completely Attached To Germany

Our way out is to aggressively attract equity investments, primarily in agriculture and industrialisation, with an emphasis on exports. The pandemic has definitely enthroned the...

Dr. Milan R. Kovačević, Serbian Scientific Society of Economists

Increasing Competitiveness Remains Our Key Topic

The world will remain global, but also increasingly wary of all kinds of risks that can hamper cross-border flows. It has long been essential...