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Emil Sovilj CEO, Energotehna d.o.o.

Building the Energy of the Future

“I believe that by consolidating the capital of domestic, smaller yet reputable companies, we could once again establish a strong reputation as reliable builders,...

Stanislava Petković, General Director of Vista Rica

A Pioneer in Opening New Investment Opportunities for the Economy

The investment market in Serbia is undergoing a transformation, with alternative investment funds attracting increasing attention from domestic investors In this interview for CorD, Stanislava...

Miloš Jauković, CEO, Dr. Max Serbia

Making Healthcare Accessible to All

Dr. Max Group and Dr. Max Serbia are leaders in providing comprehensive and timely services to patients, with highly ambitious plans for the company’s...

Milorad Stojanović and Darko Šehović, Data Cloud Technology (DCT)

Comprehensive Solutions for Digital Transformation

In today’s dynamic digital landscape, companies face increasing challenges related to IT infrastructure, data security, and business continuity. Data Cloud Technology (DCT) has positioned...

Goran Medić, Director, INOVA-Geoinformatika

INNOVAtion is a Key Part of Our Identity

The advanced and innovative solutions of INOVA, best known for its TeleCAD-GIS and INOVA GIS platform, are applied not only in telecommunications but also...

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 Zoran Panović

Students & Vučić

The largest mass gathering in the history of Belgrade demystified the myth of the so-called critical mass, because it doesn’t have to mean anything...

Aleksandar Vlahović, President of the Serbian Association of Economists

A Lack of Quality Institutions Reaches Boiling Point

The resignation of Prime Minister Vučević represents a precedent in Serbia’s political life, marking the consequences of a deep political crisis, the resolution of...

Goran Radosavljević, Ph.D. Vice-Dean for Research and Director of the FEFA Institute

Bad and Good News

Although the political crisis threatens the economy over the short term, meeting protestors’ demands for stronger institutions and the fight against corruption could stimulate...

Pavle Petrović, economist, former president of the Fiscal Council and a member of the Serbian Academy of Sciences and Arts (SANU)

Time for a U-turn in Serbia?

The prime minister’s resignation, prompted by mass protests, may open a window for Serbia to shift from state-led cronyism to an entrepreneurial model grounded...

EC Welcomes Serbia’s New Government, Emphasizes Commitment to EU Path

The European Commission has welcomed the appointment of Serbia's new government under Prime Minister Đuro Macut, highlighting the importance...

Serbia’s Living Pavilion Blooms in Osaka

At the official opening of Serbia’s pavilion at EXPO 2025 Osaka, Commissioner Žarko Malinović stated that Serbia was proud...

Automation, Migration and Labour Shortages – A European Perspective

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Croatia and Serbia’s RETFOR Project

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China Responds to New US Tariffs with 25% Levy on American Goods

Beijing has announced a 25% tariff on certain imports from the United States, following Washington's decision to impose new...

Serbia’s Living Pavilion Blooms in Osaka

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Automation, Migration and Labour Shortages – A European Perspective

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Croatia and Serbia’s RETFOR Project

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China Responds to New US Tariffs with 25% Levy on American Goods

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EU launches Call for private investment in the Western Balkans to drive economic growth and boost EU integration

At the ADRIA Summit 2025 in Montenegro, today the European Union announced a Call for Expressions of Interest to...

Serbia’s Living Pavilion Blooms in Osaka

At the official opening of Serbia’s pavilion at EXPO 2025 Osaka, Commissioner Žarko Malinović stated that Serbia was proud...

Automation, Migration and Labour Shortages – A European Perspective

As Europe grapples with persistent labour shortages across key sectors, new research underscores how both automation and migration have...

Croatia and Serbia’s RETFOR Project

In a bold step towards tackling climate change through cross-border cooperation, the RETFOR project was launched as part of...

China Responds to New US Tariffs with 25% Levy on American Goods

Beijing has announced a 25% tariff on certain imports from the United States, following Washington's decision to impose new...

EU launches Call for private investment in the Western Balkans to drive economic growth and boost EU integration

At the ADRIA Summit 2025 in Montenegro, today the European Union announced a Call for Expressions of Interest to...
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