About 30 percent of companies reported a drop in profits, revenues and demand for products and services, which is a significantly better result compared to last year, when half of the businessmen made such assessments.
A larger drop in income is reported by micro, small and medium enterprises that are significantly harder hit by the crisis – said Dragana Stanojevic from the USAID Economic Development Cooperation Project, presenting this year’s results of a survey in which representatives of a thousand companies participated.
According to businessmen, the pandemic continues to threaten all business segments, and the most severely affected are plans for further investments, then liquidity, while in third place are problems in the supply chain, between producers and customers, which also plagues the global economy. The optimism and expectations of the economy from next year are higher compared to the previous year, although caution is still present.
– In the assessment of transparency and predictability, businessmen stated similarly as last year – they do not think that this segment is improving. For the first time since 2013, the percentage of those who believe that the burden of laws and regulations has not decreased has exceeded half. Also, compared to previous surveys, there is a slightly smaller number of those who think that the work of the administration and state administration is more efficient. Also, more than half of businessmen believe that their ability to participate in the concept and implementation of reforms has not improved and that public-private dialogue is less intense than in previous years – said Stanojevic and stressed that the availability of information and continuous communication between the state and economy is needed even in the best of times, and while the crisis lasts, these are essential ingredients for day-to-day business and economic growth.
This year as well, the economy favorably assessed the procedures for employment, inspection supervision in the part related to checklists and advisory inspection procedures, and it is interesting to emphasize, Stanojevic pointed out, that this year for the first time less than half of respondents believe that the gray economy negatively affects their business. On the other hand, the biggest problem and the worst assessment was the amount of taxes and contributions.
– The lack of financial resources negatively affects the competitiveness of the Serbian economy, and it is closely accompanied by legal uncertainty due to unclear and non-transparently adopted regulations as well as unfair competition. Also, two thirds of the Serbian economy needs to invest, but a large number of companies either do not have good access to funds or are afraid of the uncertainty that comes with the crisis. Most Serbian companies want to invest in fixed assets, real estate or equipment, but are encouraged by the fact that almost a third this year believe that it is necessary to invest in training and development of employees, in approaching digital business models and using new technologies and development, which used to be perceived more as a luxury – Stanojevic pointed out.
Anthony Godfrey, the US ambassador to Serbia, spoke about the results of the poll at the presentation, emphasizing that he was proud of the growth of the Serbian economy and that the state responds in a timely manner to requests coming from the business sphere. He pointed out the importance of USAID projects in Serbia, especially the good results in labor legislation and inspections, which now have much clearer competencies. He emphasized that the pandemic made business more difficult, but that our economy has shown flexibility and readiness to switch to new, digital models.
For Marko Cadez, President of the Serbian Chamber of Commerce, the most important thing is that the pandemic did not stop either domestic or foreign investments, that last year’s financial reports show growth, consolidation of companies and a drop in net losses, which indicates that the state responded well to economic demands.
Broadband internet
Tatjana Matic, Minister of Trade, Tourism and Telecommunications, pointed out that the pandemic stimulated the e-commerce sector, and the need for a larger volume of digitalization will condition the rapid development of infrastructure. She emphasized that the Ministry will work especially on the development of a broadband digital network in rural areas, which is a multi-year project that should enable a better quality network for about 600,000 households throughout Serbia, Danas reports.
