Hot Issue Nr. 389

Southeast Europe Economic Index:

Economic climate improves slightly

Bosnian and Serbian entrepreneurs are optimistic about the future. This is the result of a study by the credit insurer Prisma and the market research company GfK Austria.

64 percent of the Bosnian and 68 percent of Serbian companies expect (very) positive outcomes in the year 2016. "Coperations are the forerunners." says CEO of Prisma Ludwig Mertes. "This has to do with the fact that the countries are trying to attract foreign investors to the country. Serbia, for example, is positioning itself as an attractive investment location for larger international corporations, which benefit from the low cost structure in the country.”

36 percent of Serbian companies rate the opportunities as "very good" or "good" and 62 percent believe in better business within the next twelve months. "The current government manages to ensure a positive business climate and to make good PR for their own good," says Mertes.

Serbia’s economic data reflects the good economic climate this year. In the first quarter of 2016 the economic output grew by 3.5 percent as compared to the same period last year. Last Wednesday, the central bank raised its forecast. The central bank expects an increase from 2.3 to 2.4 percent for 2016. Previously, 1.8 percent was expected. In addition, the budget deficit was amounted to € 110 million for the first four months this year, although originally € 590 million were expected.

Croatia is in a low mood. The economic climate with 53 points is still better compared to a study in 2014, when Croatia only reached a total of 51 points. This leaves Croatia at the bottom: "The reason might be that the high hopes which were placed on the elections last year were disappointed," says Mertes. Instead of setting new impetus the new coalition government is about to break apart.

Croatia is in a low mood. The economic climate with 53 points is still better compared to a study in 2014, when Croatia only reached a total of 51 points. This leaves Croatia at the bottom: "The reason might be that the high hopes which were placed on the elections last year were disappointed," says Mertes. Instead of setting new impetus the new coalition government is about to break apart.

After years of low mood for the business climate the neighboring country Slovenia has improved its situation. While the economic climate in 2014 was at its low with only 49 points, the value improved considerably with 54 points this year. After the severe economic crisis the entrepreneurs are looking into a more hopeful future.

Bosnia and Herzegovina reached 57 points, which is the second best index value right after Serbia. However, the estimates differ: coperations (64) have a positive outlook on the future while small and medium-sized enterprises (50) are more pessimistic. "This is a surprising result for us given the political instability and the economic situation in the country. But perhaps the many investments from the Arab world have caused the positive mood," said Mertes.

Based on a survey of 150 companies per country, the study of Prisma and GfK Austria examined the economic climate in Austria and the countries of Southeast Europe. It estimates the overall current and future situation featuring the planned export and investment activities. The economic climate is measured on a scale from 0 to 100, the higher the value the more positive the economic climate. The study was conducted in January 2016. The target group were small and medium-sized enterprises and corporations that work on a business to business basis.

source: APA, WirtschaftsBlatt, Print-Ausgabe, 2016-05-18

International activities of the City of Vienna 2015

The report on the international activities of the City of Vienna 2015 presents an overview of the City Administration’s diverse activities in the field of international relations. The city of Vienna is actively involved in building "bridges" by realizing numerous initiatives, strategies and projects with partner cities from Central and Eastern Europe.

The City of Vienna is a member of the IRE network and also reports on the events and activities of the Institute (see p. 17).

(To open file please click on picture.)

Save the Date:

Invitation

Panel discussion

(in German language)

Wednesday, 25 May 2016, 19:00 hrs
Internationale Salzburg Association (ISA)

Palais Kuenburg-Langenhof
Sigmund-Haffnergasse 16, 5020 Salzburg, Austri

Opening address and moderation

Univ. Prof. Dr. Franz Schausberger

IRE-Chairman and Member of the Committee of the Regions, Brussels, EU

Panelists:

Jordi Solé, Secretary for Foreign and European Union Affairs, Government of Catalonia, Barcelona, Spain

Adam Casals, Envoy and Head of the Delegation of the Catalan Government in Vienna, Austria

Krystyna Schreiber, German Author of books and publications on Catalonia, Barcelona, Spain

Dr Kai-Olaf Lang, Senior Fellow, Stiftung Wissenschaft und Politik (SWP), German Institute for International and Security Affairs, Berlin, Germany

Registration until 24 May 2016:

martina.balazic@institut-ire.eu

Tel: 0662 84 32 88 – 0

In Cooperation with: