German Investors Keep Faith With Serbia
German investors in Serbia are mostly keen to expand their business activities in the country, a new survey show.
Almost 90 per cent of German businesses present in Serbia would invest in the country again, a recent survey suggested.
“Serbia is a crucial country in the Balkans for Germany, both politically and economically,” Heinz Wilhelm, German Ambassador to Serbia, said on Tuesday at the presentation of the survey results.
The survey states that the key advantages of investing in Serbia are the availability of skilled employees coupled with low labour costs.
Legal uncertainties, government economic policies and the lack of transparency in public procurement procedures remain the most crucial obstacles.
The poll was conducted on a sample of 66 German businesspeople already in the Serbian market by a group of German business representatives.
More than 90 per cent rate their own businesses’ situation as “good” or as “satisfactory”. On the other hand, 80 per cent consider the Serbian economy to be in a “bad” state and are generally not expecting much change in the near future.
The unemployment rate in Serbia stands at 27 per cent. The average salary is already low when compared to prices, at about €380 a month.
However, more than 90 per cent of the German companies in Serbia are planning to keep their workforce stable or even increase it, the survey shows.
“We went through some ups and downs together, which shows our serious commitment to the business location of Serbia,” said Ronald Seeliger, President of the Board of the German-Serbian Chamber of Commerce.
Germany is Serbia’s biggest trading partner with an annual trade volume of €2.5 billion as well as one of the main investors, with €1.6 billion directed at the Serbian economy in 2012.
Serbian exports in 2009. Source: Wikipedia
Serbia Export Treemap. Source: Wikipedia