German and Serbian companies positively assessed the economic climate in Serbia

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German and Serbian companies, members of the German-Serbian Chamber of Commerce, positively assessed the economic climate in Serbia and expressed positive expectations for their own business, and despite the current crisis, 95 percent of companies participating in the survey would invest in Serbia again. As factors that affect business in Serbia, the fight against corruption and legal certainty are rated worst, while companies are satisfied with the qualifications and motivation of employees.

As the biggest threats and risks in the development of their companies in the next twelve months, businessmen emphasize the increase in the price of energy and raw materials, the economic and political framework, the increase in labor costs, the lack of demand, as well as the workforce deficit, announced the German-Serbian Chamber of Commerce.

During March and April of this year, the German-Serbian Chamber of Commerce (AHK Serbia) conducted a survey on the business environment in Serbia among the Chamber’s member companies. The latest results indicate a serious increase in the confidence of German companies in Serbia as an investment destination, it was pointed out at the press conference.

It was said that a further increase in trade cooperation between Serbia and Germany is expected, but not a double-digit growth rate.

Despite the consequences caused by the corona virus pandemic, as well as the consequences of the conflict in Ukraine, which are reflected in the economy at the global level, half of the respondents (52 percent) rate their business as good, and only one percent as not good enough, according to the announcement.

Ten percent fear worsening conditions, almost half plan to employ more people 

Business forecasts for the current year also contain optimism compared to the period three years ago – only 10 percent of respondents fear a deterioration.

When it comes to business development and additional employment in 2022, 49 percent of surveyed companies plan to increase the number of employees, 46 percent of companies do not plan any changes in the number of employees, while only five percent of respondents assume that the number of employees in their companies will decrease.

During 2022, 46 percent of surveyed companies plan to increase investments, while only ten percent announce a decrease in investments.

When evaluating the factors that affect business in Serbia, the worst rated are – the fight against corruption and crime, legal certainty, transparency in public tenders, the efficiency of the tax system and tax administration, as well as the availability of labor.

Criteria related to the labor market in Serbia received satisfactory grades from German-Serbian companies: the companies are satisfied with the qualification and motivation of employees, their productivity, as well as academic education.

Director of AHK Serbia: Competition is strong, the state still needs to work on improving conditions

Summarizing the results of the survey, the director of the German-Serbian Chamber of Commerce, Alexander Markus, pointed out that Serbia is still a very desirable destination for investments, the trust of German companies is increasing, but the competition is strong, and Serbia must actively invest efforts to further improve the general conditions. business.

“We are pleased with the fact that as many as 95 percent of companies would invest in Serbia again, which is the best result so far. A large number of German companies are currently looking for new suppliers, and the countries of the Western Balkans are certainly in the focus of potential German investors. From that point of view , there is a great chance for Serbia, especially when you take into account the assessments of businessmen on the spot”, said the director of the AHK of Serbia.

The head of the economic department of the Embassy of the SR of Germany in Serbia, Denis Kaiser, assessed that the survey once again confirms the attractiveness of Serbia for German companies and reflects the close economic relations between Serbia and Germany.

“However, a large number of German companies believe that it is necessary to improve the fight against corruption, as well as transparency in public procurement. We are ready to support Serbia in this, thus paving its way to the European Union”, Kaiser concluded, RTS writes.