It is estimated that state aid to the economy will be needed during the first half of next year, the Prime Minister of Serbia, Ana Brnabic, stated.
“We hope that the economy will not need help and that the situation will be better in calming the coronavirus epidemic, but we are preparing to give some kind of support in the first and long quarters of next year, if necessary,” Brnabic said at the American Chamber of Commerce research.
AmCham’s research “Eighth Transition Time – Investor Confidence and Satisfaction” showed that the members of that association believe that state aid will be needed in the next year as well, in the sectors most affected by the corona virus pandemic.
State aid has so far been used by 40 percent of AmCham members, mostly small and medium-sized enterprises.
The Prime Minister said that this year, Serbia will have the smallest drop in the gross domestic product (GDP) of one percent, and it may be even smaller.
She pointed out that the Government is trying to apply measures that should alleviate the decline in employment during the pandemic and to preserve the health care system.
“And in the first half of 2021, we will probably continue the fight with the virus and the consequences for both the economy and the economy,” said Brnabic.
Commenting on the recommendations of AmCham members, she pointed out that it had proved useful to work in the previous period on improving e-government, and that now the priority will be the rule of law and environmental protection.
AmCham President Zoran Petrovic said that businessmen passed a difficult exam because they quickly organized themselves to preserve people’s health and prepare for business so that the consequences of the epidemic would be as small as possible.
“The pandemic will be the biggest obstacle in business next year as well,” said Petrovic.
He said that the recommendation of businessmen is to switch to full online communication with state bodies, as well as the most money from the development budget to be directed to the education system, as well as health and environmental protection.
The assessment of AmCham members is that the efficiency of the judiciary is still very low, the efficiency of the fight against corruption is poorly assessed, and the simplification of tax and customs procedures was requested, as well as the improvement of regulations related to foreign exchange operations.
In 2021, most AmCham member companies (56 percent) expect an increase in business volume and growth, while 30 percent plan new employment.
The uncertainty that accompanies the pandemic has caused their expectations to be on average one-fifth to one-third lower than in the same period last year. The most optimistic indicator is related to the planned investments – two thirds of the membership plans to invest additionally in the next year.
70 percent of members see the biggest challenge in the next year in the unpredictability of the pandemic, then in the efficiency of the work of the state administration, 48 percent, while 46 percent resent the unpredictability of changes and application of regulations.
The greatest administrative burdens for members arise from tax, customs and foreign exchange regulations.
This year, 65 percent of AmCham member companies had a decline in business, and the impact of the pandemic had the greatest impact on the decline in investment, then on the decline in profits and revenues, while employment was mostly maintained at the level of the previous year.
The survey conducted by AmCham since 2013 among its members every year provides an overview of their assessment of the business environment in Serbia, their current business and plans for next year, as well as recommendations to the Government of Serbia to improve the business environment and economic recovery.
AmCham is made up of 200 American, international and domestic companies that employ more than 100,000 people, eKapija reports.
