Foreign investments in Serbia exceed EUR 2.6 billion in past 18 months

Judging by the state's results in bringing the Serbian economy to its feet in 2016, economists claim that its contribution to the growth of total investments is quite solid. Member of the Fiscal Council point out that the carrying out of reforms has come to a halt in 2016, with the only bright spot being the growth of public investments from 3 to more than 4% of the GDP.

The biggest contribution to the economic growth in 2015 of 0.8% and this year's of at least 2.7% will be made by investments, the National Bank of Serbia believes, as confirmed by the net inflow of foreign direct investments of over EUR 2.6 billion in the past 18 months.

Serbia has placed 59th on the World Bank's “Doing Business 2016” list, a jump of as many as 32 spots compared to last year's list. Those in the know claim that the positive impact of this jump on the growth of local and foreign investments will be especially pronounced in the years to come.

Last year's net inflow of foreign direct investments exceeded EUR 1.8 billion, and at least as much can be expected in 2016.

– If Serbia has around EUR 2 billion of the net inflow of foreign direct investments this year, it will be a good result – economist Radovan Kovacevic believes. – Especially if the so-called greenfield investments prevail, meaning raising new facilities, creating new jobs and producing in order to export.

According to Ernst & Young's research, Serbia is one of the five most attractive countries for foreign direct investments (FDI) in the European industry and the second by the growth rate of new jobs created from FDI.

Serbia needs to aim for annual FDI in the amount of EUR 3.5-4 billion, which would even out our balance of payments and free us of the need to incur additional debts, Kovacevic says. This goal can only be achieved by constantly improving business conditions.

Prime Minister Vucic has promised that the government will strive for the FDI inflow to exceed USD 3 billion by the end of its mandate.

Fiskalni savet Republike Srbije

Svetska Banka-WB Beograd

Narodna banka Srbije Beograd

Ernst & Young d.o.o. Beograd

foreign direct investments

economic growth

NBS

Doing Business 2016

Radovan Kovacevic

greenfield investments

Ernst & Young