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This year’s foreign direct investment inflow to reach €1.5bn
Belgrade,
11 June 2007
State Secretary at the Ministry of Economy and Regional Development Jasna Matic stated yesterday that this year Serbia may expect foreign direct investment inflow to reach €1.5 billion.
Jasna Matic
In a statement to the Beta news agency, Matic said that compared to last year’s €4.5 billion, this amount is considerably lower, which is a consequence of the six-months’ halt caused by parliamentary elections, during which period investors refrained from investing and privatisation of many companies was put on hold.
She added that the estimate is a realistic one, though it does not mean that the amount cannot be higher, provided that the privatisation process quickens.
Foreign direct investment in the Serbian economy from the beginning of 2007 onwards stands at approximately €300 million, specified Matic and added that foreign investors’ interest increased again following the formation of the new Serbian government.
She also said that in line with the Decree on stimulation of foreign investment, the state decided to allocate €10.2 million to investors who employed more than 5,000 workers when they opened new production capacities in Serbia.
According to Matic, the Decree was adopted last year and since investors mostly invested in industrial production, the average amount they got was the minimum sum of €2,000 per every new employee.
The State Secretary said that investors are mainly interested in outsourcing a portion of their production to Serbia, thus cutting costs, but also in investments into office space, hotels, flats, tourist potential and all kinds of infrastructure facilities.
Matic said that Serbia’s competitive advantage lies in the production of small series of relatively quality products which it would supply to the European market. She also added that interest in investments into underdeveloped areas in the south of Serbia has been on the rise due to lower labour and production costs.
She voiced hope that Serbia will soon conclude the Stabilisation and Association Agreement with the EU and thus gain access to EU pre-accession funds for economic development, as well as funds for structural adjustment and new investments.
She added that the estimate is a realistic one, though it does not mean that the amount cannot be higher, provided that the privatisation process quickens.
Foreign direct investment in the Serbian economy from the beginning of 2007 onwards stands at approximately €300 million, specified Matic and added that foreign investors’ interest increased again following the formation of the new Serbian government.
She also said that in line with the Decree on stimulation of foreign investment, the state decided to allocate €10.2 million to investors who employed more than 5,000 workers when they opened new production capacities in Serbia.
According to Matic, the Decree was adopted last year and since investors mostly invested in industrial production, the average amount they got was the minimum sum of €2,000 per every new employee.
The State Secretary said that investors are mainly interested in outsourcing a portion of their production to Serbia, thus cutting costs, but also in investments into office space, hotels, flats, tourist potential and all kinds of infrastructure facilities.
Matic said that Serbia’s competitive advantage lies in the production of small series of relatively quality products which it would supply to the European market. She also added that interest in investments into underdeveloped areas in the south of Serbia has been on the rise due to lower labour and production costs.
She voiced hope that Serbia will soon conclude the Stabilisation and Association Agreement with the EU and thus gain access to EU pre-accession funds for economic development, as well as funds for structural adjustment and new investments.
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