Q:
A:
Serbia increasingly attractive to foreign investors
Belgrade,
26 January 2006
The Serbian Ministry of International Economic Relations stated today that Serbia-Montenegro will become a desirable destination for investors from the US and other countries after being declared Market of the Month by the US Commercial Centre, a specialised agency of the US Department of Commerce.
The statement specifies that Serbia-Montenegro's main advantage is its accessibility to the southeast European market through the Free Trade Agreement. Another advantage is that with the exception of the Union of Independent States (SNG), Serbia-Montenegro is the only signatory of the free trade agreement with Russia.
The Ministry finds that one of the key reasons for foreign investors’ interest in Serbia-Montenegro is the fact that the EU has extended autonomous trade preferences to Serbia-Montenegro until 2010 and the US has designated it a beneficiary developing country under the US Generalized System of Preferences (GSP).
The US Commercial Centre also points out that GDP in Serbia-Montenegro has doubled compared with 2001, amounting to almost $3,000 per capita, and that in 2004 there was a record 9.3% upsurge in the economy. It is expected that the growth rate will be around 5% in the upcoming years, which will considerably improve purchasing power.
The statement continues that an obvious sign that the implementation of economic and legal reforms has already started in Serbia-Montenegro is the official beginning of talks on the Stabilisation and Association Agreement (SAA) with the EU, as well as the improvement of the economic climate in Serbia.
The statement recalls that last year, the World Bank ranked Serbia-Montenegro first among the top 12 reformers worldwide out of 27 countries whose progress has been regularly monitored by the European Bank for Reconstruction and Development (EBRD) for 12 years. Furthermore, Standard & Poor's Ratings Services has raised its long-term sovereign credit ratings on Serbia to 'B+' and said at the fifth Euromoney conference, held on October 26 in Cavtat, that Serbia-Montenegro has improved its investment climate as well.
The US Commercial Centre also underlines Serbia-Montenegro's favourable tax system and the lowest tax rate in Europe, which is ten percent of company profit. Other incentives for investors include a ten-year tax exemption for investments exceeding €7 million.
With this in mind, the Ministry of International Economic Relations pointed out it will keep improving the business environment in Serbia, especially the investment climate so as to help boost foreign investment. The Ministry has already composed a draft strategy to encourage foreign investments which will soon be adopted, concludes the statement.
The Ministry finds that one of the key reasons for foreign investors’ interest in Serbia-Montenegro is the fact that the EU has extended autonomous trade preferences to Serbia-Montenegro until 2010 and the US has designated it a beneficiary developing country under the US Generalized System of Preferences (GSP).
The US Commercial Centre also points out that GDP in Serbia-Montenegro has doubled compared with 2001, amounting to almost $3,000 per capita, and that in 2004 there was a record 9.3% upsurge in the economy. It is expected that the growth rate will be around 5% in the upcoming years, which will considerably improve purchasing power.
The statement continues that an obvious sign that the implementation of economic and legal reforms has already started in Serbia-Montenegro is the official beginning of talks on the Stabilisation and Association Agreement (SAA) with the EU, as well as the improvement of the economic climate in Serbia.
The statement recalls that last year, the World Bank ranked Serbia-Montenegro first among the top 12 reformers worldwide out of 27 countries whose progress has been regularly monitored by the European Bank for Reconstruction and Development (EBRD) for 12 years. Furthermore, Standard & Poor's Ratings Services has raised its long-term sovereign credit ratings on Serbia to 'B+' and said at the fifth Euromoney conference, held on October 26 in Cavtat, that Serbia-Montenegro has improved its investment climate as well.
The US Commercial Centre also underlines Serbia-Montenegro's favourable tax system and the lowest tax rate in Europe, which is ten percent of company profit. Other incentives for investors include a ten-year tax exemption for investments exceeding €7 million.
With this in mind, the Ministry of International Economic Relations pointed out it will keep improving the business environment in Serbia, especially the investment climate so as to help boost foreign investment. The Ministry has already composed a draft strategy to encourage foreign investments which will soon be adopted, concludes the statement.
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