With the markets and also the economy seeing continued effects in the COVID-19 pandemic, many investors are turning their attention toward 2023. Which trends and concerns could shape an investment landscape in 2023?
According to the latest EIB-EBRD-WB Enterprise Survey, practices in the informal sector, workforce education and political instability are some of the biggest obstacles faced by enterprises. To reap the entire advantages of the recovery, digitalisation and decarbonisation are extremely two important aspects which will determine the rate of growth and unleash the potential of the private sector. The EIB is supporting the introduction of the 5G network in Serbia, as well as the upgrade of existing 4G infrastructure, which will enable the digital transformation of all sectors.
The green transition and a shift to more sustainable and efficient energy resources are going to be instrumental for future growth. Companies will also have to look for new business models to address global warming mitigation and adaptation. Because the EU climate bank, the EIB has scaled up its financial and tech support team to help the WB advance using the Green Agenda and lower polluting the environment. Implementation of all these kinds of projects will be further supported because of the establishment of the new dedicated branch – EIB Global, which will help bring more financing and hands-on expertise in a country-specific level.
How would you rate the overall impact from the crisis on the Serbian economy and which direction don't let take to overcome consequences and continue with the growth?
Serbia weathered the pandemic rather well, with output contracting by a modest 0.9% in 2023, and the economy recovered by about 7.5% in 2023. The EIB Enterprise Survey shows that no more than a fifth of firms in Serbia closed down temporarily due to the pandemic, much lower compared to WB average of 38%. However, risks towards the growth outlook are substantial even if the vaccination rate in Serbia is above the average over the region. Acceleration using the key reforms underneath the EU accession process, specially in the section of investment management practices, would help produce a better investment climate and generate new job opportunities.
Numerous structural weaknesses need to be addressed, including by placing greater focus on sustainable and inclusive infrastructure. These types of projects is going to be area of the new EIB Global's strategy for the location, aiming to accelerate the preparation and implementation of investments within the areas of digitalisation, renewable energy resources and vital infrastructure that will ensure socially and environmentally balanced growth.
