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Nicolas Marquier, Regional Manager for the Western Balkans at the IFC

Financing the Future

IFC, the largest global development institution, has provided almost $1 billion in financing to Serbia’s private sector over the past six years IFC, as a...

Iosif Vangelatos, General Manager, Inos Balkan

Proud of Tripling Trade Volume

Inos Balkan already possessed extensive expertise in the recycling sector, with its collection and processing centres, while it has today transformed itself successfully to...

Aris Karousos, CEO of Eko Serbia

Drivers Know Why They Choose Eko

Two decades ago, when this company launched its operations in Serbia, the desire was for the EKO brand to become synonymous with reliability, quality...

Danilo Đurović, General Manager, Autotechnica Serbia – Hertz

Introducing Flex Drive

As part of the Autohellas Group, which has been the absolute leader of Greece’s automotive sector since 1974, Hertz is more than just a...

Nikos Veropoulos, Owner, Veropoulos

Super Vero, Super Successful

For two decades already, company Veropoulos has been known on our market for its unique offer and high-quality products at promotional prices, but also...

Marko Čadež, President of the Chamber of Commerce & Industry of Serbia, 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 that are already present on the market, primarily German ones, are announcing the continuation of their operations and investments in Serbia. However, a need for caution is suggested by the possibility of a return of the epidemic and associated geopolitical risks.

It is quite certain that the speed of recovery of the Serbian economy will depend, among other things, on how quickly the global and EU economy will recover, with the EU representing the main foreign trade partner and largest investor in Serbia and the region, with which we realise two-thirds of our total international exports, imports and trade. This applies in particular to the speed at which we will see the revitalising of the economies of countries like Germany or Italy, with which we’ve had the greatest trade and which are the home countries of the most foreign investments and companies that do business here.

The Serbian economy has shown, during the pandemic, a surprising and encouraging dose of vitality, flexibility and an ability to adapt even in the most difficult circumstances, continuing to produce, export and fulfil contractual obligations to partners around the world, while the state confirmed its exceptional skills in crisis management and understanding for the needs of business leaders.

This has contributed to saving jobs and companies, maintaining liquidity and securing a realistic basis for a faster recovery, and – according to independent international financial institutions – a smaller fall in GDP this year, stronger than average growth in the next year and a better outlook than most comparable economies in the medium and long term. This also means greater opportunities and greater attractiveness for the international business community, which in the coming period will, more than ever, seek secure and stimulating investment destinations that guarantee better conditions for doing business, greater predictability and profit, as well as healthier local economies and suppliers that they can rely on.

Despite the fact that the openness of the Serbian economy and its great connectivity with the international market and supply chains seem like a handicap at this moment seem, due to a great dependence on the movements of external markets, serving optimism are a series of favourable facts. From preserved macroeconomic stability, via the greater readiness of the Serbian economy in a structural sense than during the global financial crisis of 2008, to forecasts of high growth in 2021 of between five and eight per cent – more than enough to cover the losses of the economy this year – and good prospects for the further improvement of the country’s credit rating and its transition to the investment-grade zone.

Global uncertainties additionally point to the need to strengthen regional cooperation and accelerate construction of a common regional market in order to ease and increase mutual and world trade

The fact that agency Standard & Poor’s confirmed Serbia’s previous BB+ credit rating even under the conditions of the global crisis is exceptionally important to the domestic economy and provides an excellent signal to investors and partners from around the world. With expectations among more than half of domestic companies – surveyed in the regular quarterly survey of the Chamber of Commerce & Industry of Serbia – that they will not halt their investments in equipment and fixed assets, we are particularly encouraged by the confirmations of large foreign companies already present in the country, primarily German ones, that they will continue operations and investments in Serbia, are continuing to talk with potential new investors and are announcing some major investments.

Of course, despite the fact that this global crisis – although it has great consequences for the world economy – is not in its nature deep or a crisis of liquidity like the one from 2008 (which is indicated, among other things, by the preserved liquidity of large systems and banks and the relatively favourable stock market price of copper in relation to the steep drop in the price of oil), caution is not a waste. First and foremost, due to the unpredictability of further events – the speed of opening the economies of the most developed countries, the possibility of a “second wave” of the pandemic and geopolitical risks.

Global uncertainties add to the significance and, like never before, point to the need to strengthen regional cooperation, accelerate the construction of a common regional market in order to ease and increase mutual and world trade, enhance the attractiveness of the region for domestic and foreign investment, as well as the need to continue reforms that will enable the faster and deeper integration of the region into the unified legal and economic system of the European Union.

Comment

Census Results Cause Concern

The Ministry of Education claims to be exerting ongoing efforts to reform education, but census results indicate the need for more work. The “Platform...

By Iva Draškić Vićanović Ph.D., Dean of the University of Belgrade Faculty of Philology

Restore Teachers’ Dignity

The proposals presented in our Platform are viable over the short term, require no large and lasting reforms and could lead to major visible...

Comment by Prof. dr Slobodan Zečević

The Mirage of the European Oasis

Serbia officially began EU accession negotiations in January 2014. Over the subsequent decade, 22 of the 35 accession negotiation chapters have been opened and...

Plamena Halacheva, Deputy Head of the Delegation of the European Union to Serbia

Easier Access to the Western Balkans’ Single Market

The EU aims to involve Western Balkans partners with its Member States on equal terms, fostering a reform partnership that’s oriented towards the future...

CEB Grants €1.3 Billion Loans to Boost Social Sectors in 11 Countries

The Council of Europe Development Bank (CEB) has sanctioned loans totaling €1.3 billion for 11 member countries, including Serbia...

Serbia Advances in Renewable Energy with Pupin Wind Park Financing

In a significant stride towards renewable energy adoption, Serbia has finalized the financial arrangements for the Pupin Wind Park,...

Đedović Handanović: Nuclear Energy in Serbia by 2039 at the Earliest

Nuclear energy in Serbia could become a reality by 2039 at the earliest, should work on the project commence...

Belgrade’s Hotel Jugoslavija Sold, Sparks Redevelopment Controversy

Belgrade's iconic Hotel Jugoslavija, located in Serbia's capital, has been sold for approximately €27 million to MV Investment, affiliated...

Bosnia and Herzegovina Kickstarts EU Membership Talks

Bosnia and Herzegovina has initiated accession negotiations with the European Union, a development hailed as a pivotal advancement for...

CEB Grants €1.3 Billion Loans to Boost Social Sectors in 11 Countries

The Council of Europe Development Bank (CEB) has sanctioned loans totaling €1.3 billion for 11 member countries, including Serbia...

Belgrade University Partners with CERN on Future Circular Collider Project

The University of Belgrade has officially become part of CERN's largest scientific endeavor, the Future Circular Collider (FCC) project,...

Kushner Eyes Balkan Luxury Developments in Serbia and Albania

Jared Kushner, closely related to former U.S. President Donald Trump as his son-in-law, is turning his attention to the...

European Parliament Passes Groundbreaking AI Law

The European Parliament has adopted the Artificial Intelligence (AI) Act, aiming to safeguard fundamental rights, democracy, the rule of...

European Parliament Members Endorse Western Balkan Reform and Growth Instrument

Members of the European Parliament's committees on foreign affairs and budget have officially adopted a stance on the Western...

CEB Grants €1.3 Billion Loans to Boost Social Sectors in 11 Countries

The Council of Europe Development Bank (CEB) has sanctioned loans totaling €1.3 billion for 11 member countries, including Serbia...

Belgrade University Partners with CERN on Future Circular Collider Project

The University of Belgrade has officially become part of CERN's largest scientific endeavor, the Future Circular Collider (FCC) project,...

Kushner Eyes Balkan Luxury Developments in Serbia and Albania

Jared Kushner, closely related to former U.S. President Donald Trump as his son-in-law, is turning his attention to the...

European Parliament Passes Groundbreaking AI Law

The European Parliament has adopted the Artificial Intelligence (AI) Act, aiming to safeguard fundamental rights, democracy, the rule of...

European Parliament Members Endorse Western Balkan Reform and Growth Instrument

Members of the European Parliament's committees on foreign affairs and budget have officially adopted a stance on the Western...
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