Romania made bigger investments in Serbia than Germany

Foreign companies continued to invest in Serbia and in the first ten months of this year, they invested EUR 3.7 billion, which is about 8% more than last year.

Chinese investments, although the largest individual investments, were cut in half compared to last year, while Germany, traditionally our biggest investor for many years, invested only EUR 117.6 million.

According to official data covering the first nine months of 2023, the foreign direct investments (FDI) influx in Serbia amounted to EUR 3.2 billion (net FDI EUR 3 billion). Preliminary data for October indicate that this influx, viewed from the beginning of the year to the end of October, exceeded EUR 3.7 billion, the National Bank of Serbia said.

It remains to be seen whether the value of FDIs will reach last year’s record 4.4 billion euros.

The NBS’ latest projection for this year is about EUR 4 billion, that is, close to 5% of GDP.

“However, developments in the course of the year so far and our new estimates for the remaining part of the year indicate that this influx will almost certainly be greater than projected, that is, it will exceed EUR 4 billion,” says the NBS.

By far most investments come from the EU, but also Asian countries, primarily China. The ratio is approximately two to one, as the FDIs European countries amount to 65.8% and Asian countries 32.3%.

Observed by country, during the first two quarters of 2023, the largest FDIs in Serbia were made by China (EUR 592.6 million), the Netherlands (EUR 414.7 million), Romania (EUR 124.5 million), Great Britain (122.5 million EUR), Germany (117.1 million EUR) and Austria (113.6 million EUR).

However, we should bear in mind that significant investments made by The Netherlands do not necessarily come from Dutch companies as many foreign investors make investments via their Dutch subsidiaries due to tax benefits.

It is interesting to note that Romania is ahead of Germany in terms of investments in Serbia this year, which is currently considered to be the largest European investor in Serbia. In the last ten years, German companies have invested more than 4 billion EUR here and employed around 80,000 people, but obviously, because of the recession, they invested less this year.

(Biznis i Finansije, 04.12.2023)

This post is also available in: Italiano

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