Austrian companies satisfied with workers and suppliers in Serbia - Bussiness results in 2012 good despite difficult economic situation

According to a survey conducted by the Trade Department of the Austrian Embassy to Serbia, most Austrian companies operating in Serbia are satisfied with their business results in 2012. As it was said at a press conference, 47 percent of the polled companies rated their own operations as good to very good, whereas 31 percent said they were satisfying.

- Almost two thirds of them said their turnover had grown in 2012, while a third of those polled increased the number of their employees and investments this year - said Andreas Haidenthaler, trading advisor at the Embassy of Austria.

This online survey was conducted from October 22nd through November 9th among 108 managers of branch offices, that is, subsidiaries of Austrian companies.

According to Haidenthaler, about 42 percent of the Austrian companies expect Serbia`s economic prospects in 2013 to stay the same as this year, whereas a third of those polled expect them to improve. A fourth of the Austrian companies in Serbia believe that the situation will get a bit worse next year.

As Haidenthaler explained, the current economic situation in Serbia is seen as complex and problematic by three fourths of the polled companies. However, despite such opinion, most of the Austrian companies make positive forecasts for their future operations in Serbia. These businesses are primarily satisfied with the quality and availability of manpower in Serbia, as well as with the quality of local suppliers.

In their opinion, the most significant business factor is so-called payment ethics (being able to collect payments for the work done without experiencing any difficulties). Haidenthaler stressed that Serbia`s EU integration process would be one of the most important issues for Austrian investors in the future, pointing out that the survey respondents listed that process as one of the top five business factors.

- Austrian companies operating in Serbia find the EU integration process more significant than the issue of government incentives.

According to his words, Austrian companiex also expect the Serbian government to ensure political stability and legal certainty, cut bureaucracy, fight against corruption, keep the national currency stable and improve the payment ethics.

- Of all those polled, 71 percent see political stability as necessary for their successful continuation of operations and additional investment in Serbia, whereas 69 percent find that impossible without the country's EU integration process.

Since 2000, Austria has committed EUR 2.8 billion to Serbia, which is more than it invested in any other country in the same period.

When asked to comment on the possible arrival of the market chain Spar in Serbia, Andreas Haidenthaler said he had no concrete information about that, so he could not give any comment on speculations. However, he cited the global economic crisis as a reason for new foreign market chains not to enter Serbia, adding that another reason was the fact that the market was dominated by a small number of extremely strong players in that domain.

Speaking about the expected volume of trade between Serbia and Austria in 2012, Haidenthaler noted that last year's trade of EUR 860 million would not be achieved for sure.

- Austria's exports to Serbia grew this year, whereas imports from Serbia dropped in value, primarily because of the situation in Zelezara Smederevo steelworks - said Haidenthaler.