For over 20 years, the Foreign Investors Council (FIC) has advocated for a sustainable and competitive business environment in Serbia. Their annual “White Book Index” measures the progress of business conditions, revealing minimal change from 2022 to 2023, with an index score of 1.36, still below the average of 1.40. Of the 383 recommendations from the previous edition, only 29 (8%) showed good progress, while 276 (72%) saw no progress at all.
The global energy crisis, exacerbated by sanctions on Russia, has significantly impacted Serbia’s business climate, driving up inflation and creating supply uncertainties. FIC recommends moving away from price regulation in energy and calls for better contract models, especially for renewable energy sources.
The council is also focused on promoting regenerative agriculture, reducing parafiscal burdens, and advocating for reforms in the law regarding foreign investments and employment. The importance of digitization and enhancing green financing solutions is emphasized as well.
Despite challenges, including a return to stagflation after the pandemic, Serbia has seen a historic rise in public and foreign direct investments. However, the country requires about 25% of GDP in investments to sustain economic growth. FIC suggests that increasing domestic investment, particularly from small and medium-sized enterprises, is crucial to closing the investment gap.
FIC’s recommendations center on key priorities: enhancing EU membership negotiations, reducing inflation and interest rates, restructuring public expenditures, and addressing structural unemployment. The council highlights the need for better labor market conditions and combating the gray economy to foster a more favorable environment for investment and economic growth.
