CEVES experts highlight that German investments in Serbia have significantly reduced unemployment by employing over 80,000 people, with many jobs located in underdeveloped regions of the country. These investments have also fostered collaborations with domestic small and medium-sized enterprises (SMEs). Remarkably, five of these SMEs have emerged among the top 15 “domestic” exporters. Leading the pack in 2023 is ZF Serbia with exports totaling 504.8 million euros, followed closely by Leoni Wiring Systems Southeast with 489.3 million euros, Robert Bosch with 453 million euros, Henkel with 405 million euros, and Hemofarm with 351.9 million euros.
It’s worth noting that none of the top 15 “Serbian” exporters are majority-owned by Serbian entities. This underscores that foreign companies, including over 900 from Germany alone, are operating in Serbia primarily to export goods produced locally to markets outside the country. This reality raises questions about the orientation of new investments, particularly as investors weigh geopolitical uncertainties involving Serbia’s relations with Moscow, Beijing, and Brussels. This cautious approach is reflected in the recent decline from 52% to 39% in the share of German companies that perceive favorable working conditions in Serbia.
In conclusion, excessive political noise may deter business confidence, as evidenced by the proverbial caution of capital.
