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.