Fiat, swine fever and Kosovo’s tax lower industrial production in Serbia

The latest issue of the Macroeconomic Analyses and Trends (MAT) economic news bulletin said that the country’s overall industrial production dropped in September.

MAT associated Stojan Stamenkovic said that the 100 per cent tariffs on goods from Serbia imposed by the Kosovo government, an outbreak of swine flu and a drop in production at the FIAT-Chrysler Automobiles factory in Kragujevac were the major problems facing the economy.

He said that the processing industry reported year-on-year growth of 1.7 per cent in September, adding that the food processing industry would have achieved a growth of 4 per cent if not for the tariffs and swine flu. Stamenkovic said the food industry lowers the dynamics of the industry as a whole.

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According to him, the food industry faces problems in the meat and meat product sector because of the Kosovo tariffs and ban on exports following an outbreak of swine flu as well as lower demand for exports to Russia.

“The production of motor vehicles and trailers does not seem to be problematic at first glance because its negative balance in September was at a minimum of 1 per cent but the problem is the long-term drop in production at FIAT – Chrysler Automobiles,” he said, adding that motor vehicle production dropped 42.1 per cent year-on-year in the January-September period, and by 39.2% in September alone.

To remind, Fiat’s workers were on extended leave in August, so production was stopped again.

Stamenkovic also added that the third area that threatens to become a problem is the production of base metals, which is limited by EU rules.

(Politika, 05.11.2019)


This post is also available in: Italiano

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