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Prof. Dr Danilo S. Furundžić M.Arch.

University – Asset Management, Reform and Role in Society

The proposed University Centre in Block 32 is one of the most ambitious projects in the contemporary development of higher education in Serbia. Conceived...

Tadeu Marroco – BAT Chief Executive Officer

BAT’s Growing Success in Serbia: The Future Lies in Smokeless Products

Tadeu Marroco has been BAT’s Chief Executive since May 2023, following his role as Finance Director from 2019. Since joining BAT in 1992, he...

Duško Suvajac, Principal Representative of the Project Investor, MD Ventures

New Era of Office Buildings in Novi Sad

Situated in the heart of Novi Sad’s future Central Business District, Elleven is a new project by MD Ventures that introduces sustainable architecture, an...

Galina Goduhina, Commercial Director at ONLYOFFICE

Innovation, Open Source anda New Era of Productivity

With more than 15 million users worldwide, ONLYOFFICE has emerged as a leading alternative to traditional offi ce suites. Its focus on innovation, open-source...

Nemanja Vujadinović, COO of SRC

Reality Over Templates

How SRC builds digital solutions that truly transform businesses – Interview with Nemanja Vujadinović, Chief Operating Officer at SRC In a time when businesses are...

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 By Branka Prpa

A Rebellious Man

As the history of the 20th century shows us, drowning in the collective Self ends in a totalitarian order with an anti-human nature that...

In Memoriam: His Holiness Pope Francis,
By H.E. Archbishop Santo Rocco Gangemi Apostolic Nuncio to Serbia

Journey Graced by Divine Signs

Making peace requires courage—courage to say yes to encounter and no to conflict; yes to dialogue and no to violence; yes to negotiation and...

Aleksandar R. Miletić, historian

Can Student Ideals Be Realised?

Amid economic and geopolitical instability, Serbia’s student-led protests emerge as a rare beacon of principled idealism, though they lack support from a cohesive or...

Milo Lompar Ph.D. professor of the University of Belgrade Faculty of Philology and President of the Serbian Literary Guild

How Much Can We Trust Europe?

A student protest that merges European values with national sentiment has instinctively exposed the falsehoods of both domestic and European politicians. What remains to...

IKEA Serbia Enters New Era with Leadership Change

IKEA Serbia has appointed Aleksandar Rajčević as its new Market Manager, signalling a new chapter as the company posts...

AliExpress Eyes Niš Logistics Hub

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Pope Leo XIV: An American Voice at the Helm of the Catholic Church

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Serbia’s Gaming Surge

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Serbia Eyes Nuclear Future in Ambitious 2050 Energy Overhaul

At Bocconi University’s “Next Milano” forum, Serbia’s Minister of Mining and Energy, Dubravka Đedović Handanović, outlined a bold roadmap...

IKEA Serbia Enters New Era with Leadership Change

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AliExpress Eyes Niš Logistics Hub

Chinese e-commerce giant Alibaba could soon establish a major logistics centre in the Serbian city of Niš, following the...

Pope Leo XIV: An American Voice at the Helm of the Catholic Church

Cardinal Robert Francis Prevost has been elected as Pope Leo XIV, becoming the first American to serve as the...

Serbia’s Gaming Surge

Serbia’s gaming industry has seen a notable rise, with reported revenue growth of 22% over the past year, reaching...

Serbia Eyes Nuclear Future in Ambitious 2050 Energy Overhaul

At Bocconi University’s “Next Milano” forum, Serbia’s Minister of Mining and Energy, Dubravka Đedović Handanović, outlined a bold roadmap...

IKEA Serbia Enters New Era with Leadership Change

IKEA Serbia has appointed Aleksandar Rajčević as its new Market Manager, signalling a new chapter as the company posts...

AliExpress Eyes Niš Logistics Hub

Chinese e-commerce giant Alibaba could soon establish a major logistics centre in the Serbian city of Niš, following the...

Pope Leo XIV: An American Voice at the Helm of the Catholic Church

Cardinal Robert Francis Prevost has been elected as Pope Leo XIV, becoming the first American to serve as the...

Serbia’s Gaming Surge

Serbia’s gaming industry has seen a notable rise, with reported revenue growth of 22% over the past year, reaching...

Serbia Eyes Nuclear Future in Ambitious 2050 Energy Overhaul

At Bocconi University’s “Next Milano” forum, Serbia’s Minister of Mining and Energy, Dubravka Đedović Handanović, outlined a bold roadmap...
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