In the first eight months of this year, foreign investors invested 2.66 billion euros here, which is 1.2 percent more than in the same period last year despite the war in Ukraine, the energy crisis in Europe and the announcement of recession in America and Europe. By the way, in 2021 there were 3.9 billion euros of foreign investments.
The President of Serbia, Aleksandar Vučić, recently stated that “Ciđin”, “Toyo Tires”, “Linglong”, “Bechtel – Enka”, and “Continental” invested the most in this year.
He also said that the opening of a new factory, like the one in Požarevac recently, is especially important, but that the problem is that no one wants to invest anywhere, primarily because of the energy situation. He added that it is important to continue new investments, because part of the problem with the payment deficit is compensated by foreign direct investments. But in these conditions, as he emphasized, no one will invest anywhere, not only here.
Milorad Filipović, a professor at the Faculty of Economics, says that in these geopolitical circumstances, this can indeed be expected and a drop in foreign investment can occur, because the majority of these investments come to us from developed EU countries.
– In these conditions, when the recession crisis begins in the strongest countries of France, Germany, and Italy, when there are great uncertainties as to what the energy situation will be, how further political relations and trade with Russia and China will move, a drop in investments can be expected. This amount of investment in the first eight months is pleasantly surprising, which means that the investments have not started to fall on us – Filipović states.
Even if it is about investments by companies that already operate here, that is good. Filipović explains that it is good advertising when an investor who came five years ago continues to invest in a country.
– This means that that country is a reliable partner and that it has fulfilled the expectations and obligations towards that investor. It is a good recommendation for other investors from the same or similar markets and countries. Because it means that we become a credible partner who keeps his word. No one comes here because they love us, but because they expect good and profitable production and performance on the EU market or earlier on the Russian market – emphasizes Filipović.
Slobodan Aćimović, professor at the Faculty of Economics, notes that as soon as there are certain instabilities, it is logical for investors to stop. It has nothing to do only with Serbia.
– Look at how investments are doing in Germany, especially in construction. Our construction industry is still holding up well. It stopped there for various reasons. Some things they used to get from Russia, now they can’t. Investments are always held back when there is a potential economic crisis. Now we have a more than expected economic and political crisis. It is difficult to predict how investments will move further. Those who entered the plan will go further. We will see how it will be realized – says Aćimović.
According to him, if anyone could “take advantage” of the war in Ukraine and use their good position, it is Turkey and us. It is very convenient that Russian companies come here and invest.
