What attracts German business people to Serbia, and what bothers them the most – 90% would invest in the country again, one fifth to reduce investments

Source: eKapija Monday, 21.06.2021. 12:38
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Illustration (Photo: Unsplash/Helloquence)Illustration
Most German companies which operate in Serbia, 90% of them, would invest in the country again, as shown by a survey carried out by the German-Serbian Chamber of Commerce (AHK Srbija). Nearly one half of the companies surveyed (44.1%) expect the number of employees to increase, whereas, on the other hand, 20.5% announce that they will reduce their investments.

As the biggest risks to business, German business people emphasize the demand, the economic framework and the legal security, as well as the lack of qualified labor force.

– Although we have a difficult year behind us, which at one point affected nearly the entire economy, the results of the survey show that the estimate of the economic situation in Serbia for 2021 is better compared to the previous five years, with the exception of 2019. The good results show that supply chains are functioning well – said the president of AHK Srbija, Udo Eichlinger.

The companies rate their own business better than the general economic climate. Close to a half of the subjects (44.1%) rate their operations as good, 47% as satisfactory, whereas 8.7% are not satisfied. Business projections for the current year are also optimistic compared to 2019, with 48.8% of the subjects expecting an improvement, 41.7% expecting the business situation not to change, whereas 9.4% fear a worsening of the business situation.

The German companies in Serbia are satisfied with the labor market, and they especially highlight the productivity, the expertise and the education of the employees. For the first time, the list of positive factors features the tax system and the tax administration.

Traditionally, the worst rating is reserved for fighting corruption and crime, legal security, transparency in public tenders and availability of labor force.

Frank Aletter, Udo Eichlinger, Milan Ljusic, Thomas Schieb and Mihailo Vesovic (Photo: eKapija/ I.M.)Frank Aletter, Udo Eichlinger, Milan Ljusic, Thomas Schieb and Mihailo Vesovic


– These are not just the problems of German investors, but of all business people in Serbia. As for legal security, it something that the Ministry of Economy has been working on a lot, adopting new laws – said the state secretary at the Ministry of Economy, Milan Ljusic, who added that the company act was being prepared at the moment.


The managing director of AHK Srbija, Frank Aletter, said that numerous German companies were looking for new suppliers at that moment and that this was the reason to highlight the Western Balkans, increasing the opportunities for Serbia.

The ambassador of Germany to Serbia, Thomas Schieb, pointed out that the process of accession to the EU brought numerous benefits and improved the attractiveness of Serbia as an investment destination.

– The flaws primarily pertain to legal security, rule of law, transparency of public procurement procedures and fighting corruption. These are the topics that are important and that are in the focus of negotiations with the EU – Schieb said and added that, with the improvement of the business conditions, new investments could be expected as well.

Mihailo Vesovic, the director of the sector for strategic analyses, services and internationalization of the Chamber of Commerce of Serbia, said that, during the crisis, Serbia had kept the unemployment rate below 10%.

– With this unemployment rate, you can no longer expect investments in labor-intensive activities, but in higher-value products – Vesovic said.

The survey, carried out for the 16th time, involved 128 AHK member companies, most of them from the manufacturing industry and the fields of service and trade.

I. Milovanovic

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