The Serbian economy has a much better starting position for recovery next year than many comparable economies – this year it had the smallest decline in the region of one percent and an estimated six percent growth next year, points out the president of the Serbian Chamber of Commerce Marko Cadez.
In order for these assessments to be realized, it is important to bring the virus under control, not to prolong the crisis for several months, for the Eurozone to record the best possible result in the first quarter, and for the recovery of EU economies, especially Germany. At home, it is important that we further support and relax the economy, above all, the most endangered, and that by fighting the virus, for lives and health, we do not hinder the economy from working, Cadez said in an interview with Frankfurt’s News.
Asked which industries will recover the longest and which will recover the fastest, Cadez said that the activities that suffered the biggest initial blow and the biggest losses – the tourism and entertainment sector, including companies and entrepreneurs from the event industry chain and passenger traffic – will recover the longest.
On the other hand, some activities this year, thanks to the growth in demand for their goods, recorded a better performance than in 2019.
The production and export of basic pharmaceutical products and preparations increased by almost 9%, and in addition to pharmacy, growth was recorded by manufacturers of electrical equipment, computers and electronic and optical products and preparations, furniture, food products, and some service activities, especially the ICT sector, explained Cadez.
On the conclusion that, in addition to the markets of the region, the EU and Russia, the markets of China and Turkey are also being significantly conquered, Cadez says that agricultural and food products are mostly exported to the Chinese and Turkish markets, according to bilateral agreements with those countries.
In the export offer, especially for Turkey, we already have a range of industrial products, which we produce, and they import, from iron and copper to car tires, as well as products and services of the ICT sector. Beef and sheep went to China from Serbia. We expect that the export of milk and dairy products will start by the middle of next year and that negotiations on the export of pork and chicken meat, fruits and cereals will be completed, said Cadez.
When asked what businessmen can expect next year, in terms of state aid to help overcome the crisis, Cadez pointed out that the guarantee scheme continues, ie the possibility for businessmen to use favorable loans with state guarantees in the next six months.
He added that during January, the private, entrepreneurial sector can count on additional support, whose models are being considered, but that it is clear that future state aid measures cannot be the same for all companies, but aimed at the most vulnerable, who need help the most.
Cadez said that for a faster recovery of the economy of the entire Western Balkans, it is important for the EU to provide inclusive expansion as soon as possible and fully open its market for our products and companies and before full membership, for which, as he points out, we have German support.
According to the latest data from the NBS, 2.2 billion euros entered Serbia in the name of diaspora remittances – pensions, salaries, gifts and other payments to relatives in the country, as of September, he pointed out.
That is about 420 million less than in the first nine months of last year, said Cadez, adding that this year’s inflow of remittances from abroad is smaller, as everywhere in the world, due to the crisis in the countries where our people live and work.
He also stated that the remittances of the diaspora are, traditionally, one of the most stable inflows, which in some years exceeded three billion euros and participated in the GDP by up to 10 percent.
Cadez said that the intention is to build relations with the diaspora not only on emotions and not to pay money to families in Serbia, but on a partnership basis, in order to make better use of the potential of the country’s economy and the diaspora in the world.
In that sense, he pointed out that the signing of the Memorandum of Cooperation, last week officially marked the beginning of the partnership of PKS with the International Center for Migration Policy Development (IOM) from Vienna, in the implementation of the project “Connect, Serbia”, financially supported by the Austrian Development Agency.
The goal is to connect the diaspora, our people living in Austria, Germany, Switzerland and businessmen from Serbia, to bring business conditions and investment opportunities closer to the diaspora, and to open new export channels for small and medium enterprises from the country. A connectivity platform, which we plan to establish by mid-year at the latest, Cadez said, Danas reports.
