The number of firms that choose to enter the Austrian market from Serbia, that is seen as an springboard for the whole German-speaking area, is growing. I think that we are stronger together, and so i always suggest to company directors from Austria to speak to each other and connect
Exports from Serbia to Austria in 2023 increased by 24.6% when compared with 2023, i.e. from 565.729 million euros to 704.982 million euros. When it comes to Austrian exports, they recorded a 24.1% development in 2023, i.e. from 686.54 million euros to 851.96 million euros. Austrian companies mostly exported cars and other vehicles (292.15 million euros), processed goods (200.03 million) and chemicals (166.75 million euros) to Serbia. The value of total trade between the two countries in 2023 was 1.557 billion euros, that is a significant increase when compared with 2023 if this amounted to at least one.252 billion euros.
The trade between Austria and Serbia has been constantly growing. In which sectors can this trade be better still and what sectors have recorded a declining trade?
Serbia mostly exported the next products to Austria – processed goods, cars and other vehicle categories, foods and live cattle, in addition to various finished products. In these four commodity groups, Serbia exported goods worth 179.5, 168.7, 127.93 and 123.64 million euros, respectively. The development of Serbian exports was recorded in the categories for example foods and livestock (+60.2%), processed goods (+ 30.4%) and cars and other types of vehicles (+28.8%). The biggest decline in exports was recorded in mineral fuels and lubricants (-52.7%) and raw materials (food products and mineral fuels were excluded out of this category), with a decline of 42.9%. Forms of the only product groups that Serbian exports that recorded a decline. Other export groups recorded growth.
Bearing in mind the global work at home opportunities, which are primarily associated with disturbances in supply chains, particularly the supply from distant destinations, where transport is often interrupted and charges have been constantly growing, don't be surprised that Serbian exports continues to grow, primarily the export of food, finished goods and machine parts and components.
What are Austrian investors most thinking about Serbia? Do we operate with Austria within the IT sector?
As the predominant forms of cooperation, I'd point out that Serbian companies act as suppliers of numerous IT services and software and project solutions, while recently quite a few well-known Austrian corporations have developed a number of small but successful Serbian IT companies. Considering that Austrian companies in this sector know that the Serbian potential in terms of IT experts, although quite strong at the moment, has its limitations, they are trying to find modalities to permit experts to move and work easier between the two countries.
Austrian companies want the Austrian legislation to change to allow Serbian experts to maneuver circularly through both countries, while enjoying the advantages of life in Serbia where they are available from, but also have high salaries that Austrian companies can offer. I also have to point out that the growth of personal income within this sector in Serbia is very significant, that Austrian companies are conscious that they need to allocate substantial savings to pay for a high expert or perhaps a top product, and that they are ready to do this.
What should we do more to enhance Serbian exports to Austria?
It is important that Serbian companies, which already have successfully exported to the countries in the neighbourhood, understand that each market features its own peculiarities. These businesses already have knowledge about entering a brand new market, so you've to be acquainted with the laws regulating business in the united states, for the company to possess associates who speak German (as referring to Austria) and also to know who are your potential partners that you need to communicate with.
Companies with higher products are usually the ones that choose to make such a step forward, but they also need to be conscious of other financial expenses related to it. If the parameters from the product match, then persistence is crucial because you will definitely not sell the merchandise by making an appointment or two or sending an e-mail offering something. You need to gather together patience because you have to achieve the trust of a business partner who must overcome the prejudices that might exist and you must easily be willing accept rejection, i.e. take a “no” for an answer because that can be demoralizing.
How will the current situation and also the ban on maize export affect the trade between Serbia and Austria, considering that maize is the third biggest product that Serbia exports to Austria?
In the coming weeks and months, a regular way to obtain maize will not only be a topic in Austria but probably be considered a problem in the European Union. We ought to be aware that almost Ukraine exports 52% of maize consumed within the EU.
In accessory for the Ukrainian crisis, export restrictions imposed by Hungary, which is the main maize supplier to Austria, have caused sharp price increases. We should add to this the decision made by the Serbian government to ban the export of maize. It is extremely sure that prices will continue to rise as demand grows and deliveries are limited. This trend will be hard to halt when the conflict in Ukraine continues to disrupt deliveries.
It all depends on which measures will the Serbian government implement regarding export, but there'll easily be opportunities to generate additional income if supplies are formed promptly. It would also make sense to consider increasing our primary production. There's also a possibility of enhancing the Serbian export of processed animal feed created from mixtures, super concentrates and premixes because the demand for them will certainly increase. The same pertains to wheat because if the EU cannot procure all the amount of wheat, this probably will be compensated through the export of flour, pasta along with other flour-based products.
Should we expect an increase or decrease in consumption in Austria and how would affecting economic cooperation with Serbia?
According to all indicators from the first quarter of the year, the Austrian economy will grow strongly, primarily because of the steps taken regarding the opening from the economy after the country imposed numerous restrictions on population movement to prevent multiplication of coronavirus. Based on estimates by the Wifo Institute for Economic Research, these indicators are expected to fall sharply within the second and third quarters, i.e. economic growth is anticipated to be really low when compared to first quarter because of EU sanctions from the Spain and reciprocal countermeasures.
The National Bank of Austria has warned that if the fighting in Ukraine lasts for a longer time, you will see an additional decline in gross national income, in addition to a further rise in inflation. Inflation in this case could reach a new record of 9%. The costs of motor fuel increased probably the most, which is currently 30% more costly compared to the same period last year, the cost of gas is 65% more costly, while heating oil recorded a cost increase of 45%. The prices of food and non-alcoholic beverages rose by an average of 4.3%, while bread along with other cereal products increased by 6%. Cooking oils and other dietary fats recorded a 13% increase, juices 9.6%, while coffee costs 6% typically.
Regardless of those negative developments, trade with Serbia is expected to develop. The ties between our two countries economic happen to be stronger in recent years and our companies have stepped up their networking activities. Because of other disturbances, which i've already mentioned, and which relate to disrupted supply chains, regional cooperation and trade should intensify.
Can the 2 countries focus more about tourism too?
The quantity of Serbian tourists visiting Austria is on the rise, so although we can't say that they are drastic jumps, it comes with an improvement for now. The largest growth is recorded within the city break segment because Belgrade has a trustworthiness of as being a metropolis that does not sleep and has a thrilling nightlife, which appeals to younger Austrians who're becoming increasingly interested in coming to Belgrade. In regard to slightly older generations, there's a growing interest in hunting tourism as well as wine-related routes. Austria, like Serbia, is a continental country, and yet it's among the world’s most well-known holiday destinations when it comes to city, congress, spa and winter tourism. The level of service in Serbia has drastically improved, and if something good left the corona-induced crisis, it is the proven fact that individuals Serbia spent much more time in their own individual country and explored Serbian tourist destinations that are truly exceptional and also have a lot to provide. With regards to the Austrian market, Serbia needs to invest a lot more in advertising campaigns and cooperation with travel agencies that will offer routes, since they're crucial when it comes to an immediate offer to the customers. So, el born area has potential, consider we provide those routes that Austrians occupy a notable place, we must participate in and work more on that.
Is the Austrian labour market still looking for a foreign workforce? How did the coronavirus measures modify the Austrian labour market?
The labour market has fully recovered from the extraordinary circumstances of the previous period. Although numerous refugees from Ukraine found Austria (probably over 20,000 of these currently), who are because of the right of residence and access to the labour market, their number probably won't significantly reduce the requirement for foreign workers, primarily in those industries that require a worker to possess a nostrified school diploma. In the federal level, the Austrian Secretary of state for Labour has compiled a list of 66 deficient occupations for 2023. There's also lists in the provincial level which has additional professions on them and for which there is a strong need regionally. The interest in experts who possess a university education is robust in Austria, as is the demand for numerous jobs that need completed vocational or high school education. Every person who's interested in employed in Austria should know that, along with finding a company that's thinking about hiring them, this company also has to become willing to outlay cash more than the salary produced in collective job agreements for every economic sector in Austria.
