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Serbia Expects as Much as $1.5 Billion in FDI This Year

Nov. 14 (Bloomberg) -- Serbian foreign direct investments will decline by at least a third this year as Europe’s debt crisis affects investor confidence and other Balkan nations vie for what little opportunities are available.

Serbia sees foreign investments reaching 1 billion euros ($1.27 billion) to 1.2 billion euros by the end of the year, compared with 1.83 billion euros last year, said Bojan Jankovic, the deputy director of the Serbian Investment and Export Promotion Agency. FDI was at around 600 million euros over the first six months, he said.

Key investors from the European Union “have become much more reluctant” to commit in the region, even as some Balkan nations increase incentives for them, Jankovic said at an investment forum in Belgrade today.

Serbia’s subsidy of 4,000 euros to 10,000 euros for every job created has been topped by some of the competing countries, he said. The size of foreign investments next year may remain at the 2012 level, excluding possible large asset sales by the state that may offer Telekom Srbija AD, the national phone company, he said.

To contact the reporter on this story: Misha Savic in Belgrade at

To contact the editor responsible for this story: James M. Gomez at

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