Are Foreign Investors a “Protected Species” in Serbia?


Photo: Pixabay

Serbia still receives too few investments, economists say, although total investments in 2017 increased by 6 percent, and foreign investments rose by 27 percent, compared to the previous year, the daily Politika writes.

The share of foreign investments in the Serbian GDP reached 6.5 percent, the highest in the region.

For the sustainable increase of wages and the standard of living, it is necessary to invest at least 25 percent of what we generate, says Milojko Arsic, a professor at the Belgrade Faculty of Economics. Insufficient domestic investments are the reason for the slow development of our country and its lagging behind other countries in the region – public, or state investments, and those of domestic businesses, which would be particularly desirable.

Unlike foreign investors, who in recent years have praised the Serbian business and investment climate, domestic ones have many complaints. Foreign businesses are better protected from various forms of law abuse, such as fraud and extortion, so the business environment is much safer for them. Business costs are lower for foreign investors in Serbia, and they are largely protected from the risks that domestic entrepreneurs are exposed to.

Source: Politika

Photo: Pixabay