President of the Serbian Chamber of Commerce (PKS), Marko Čadež, announced ongoing negotiations with the United States to mitigate the impact of new tariffs set to take effect on August 1—particularly those targeting Serbia’s key exports like tires. Čadež expressed optimism about reaching a favorable outcome, citing strong political and economic ties between the two countries.
Discussing economic performance, he noted that Serbia’s GDP growth—ranging from 2.8% (according to MAT) to a more optimistic 4.2% (according to the government)—largely depends on trends in its export markets. Despite economic stagnation in Germany, Serbian exports to that country rose by 20.7% in the first five months of 2025, resulting in a trade surplus for the first time in two decades.
Serbia’s overall exports increased by 10.2% in the same period, with stable growth in industrial production. However, Čadež warned of global risks and stressed the importance of careful policy management, especially as international trade relations remain uncertain.
He highlighted increased interest from high-tech investors, such as Toyo Tires, which is relocating its R&D operations from Germany to Serbia due to local engineering talent. Meanwhile, he acknowledged the relocation of labor-intensive manufacturers like Leoni to countries with lower labor costs, framing it as a natural evolution as Serbia’s economy shifts toward knowledge-based sectors.
To manage this transition, Čadež called for gradual implementation and tax incentives to support vulnerable industries. He also praised the recent results of PKS’s Center for Economic Initiatives and Quick Solutions, which helped accelerate permit issuance for solar projects from single digits to over 40.
Key economic concerns include rising electricity prices, labor shortages, and abuse of sick leave policies. Čadež emphasized that energy-intensive industries are particularly affected and called for reforms in excise tax and billing systems to avoid plant closures. He added that PKS is working with the government to improve workforce training programs and ensure the long-term sustainability of the labor market.
He concluded by noting that while Serbia’s economy remains resilient, recent political instability has caused some investors to delay decisions, underlining the importance of stability and responsible governance.
