Address by Minister Dačić to representatives of the American-Central European Business Association (ACEBA)

Allow me to express my pleasure that we have gathered today in such a large number, and that we are joined by business people from renowned companies from various fields, such as information and telecommunication technologies, pharmacy, finance, food industry, infrastructure, and construction industry.

Serbia geographically occupies a central position in this part of Europe, which, coupled with a well-thought-out and serious fiscal and economic policy, enabled us to attract by far the most foreign direct investments in the region in the past period, to generate growth in the mining industry, processing industry, information-communication technologies, and many other sectors.

Serbia's economic results stem from strategic planning and courageous reform processes, as well as from years of methodical work on political stability aimed at taking advantage of our favourable geographical position. I can proudly say that today we are the most promising and dynamic economy of the Western Balkans and a kind of engine of regional development. And this is not my personal impression - all macroeconomic indicators have confirmed this unequivocally.

The 2022 was a record year for foreign direct investments. With 4.4 billion euros of gross foreign direct investments in 2022, the previously achieved record result in 2021 was exceeded by 13.6%. The Serbian economy is not immune to crisis, but it is resilient and with good defence mechanisms against shocks, which include adequate foreign exchange reserves, a moderate level of external and public debt, a well-capitalized and liquid banking system, as well as a proven ability to proactively react to various shocks from the international environment. According to the preliminary year-over-year estimates, gross domestic product growth in 2022 was 2,3%, showing that Serbia is continuing to record economic growth despite facing the negative effects of multidimensional shocks from the international environment.

We are proud to point out that today information and communication technologies (ICT) are Serbia’s largest net export branch, placing Serbia among the 50 largest software exporters in the world. This year it is expected that the export of ICT services will exceed 2.6 billion euros, which is an increase of about 40% compared to the previous year, while the surplus will reach over 1.5 billion euros.

Economic cooperation with the United States is developing intensively, guided by increasing investments by American companies, growing trade exchange of goods and services, and traditionally significant financial support through various development aid programs, the value of which has so far exceeded one billion U.S. dollars. Serbia has a strong interest in raising its relations with the U.S. to the level of a strategic partnership. A key pillar for that is the economic cooperation between the two countries, as a driver for further strengthening of economic and overall ties.

Today the U.S. is among Serbia's leading foreign trade partners. In 2022 we achieved a record value in the trade and export of goods and services. The trade in goods and services exceeded $2.4 billion, and Serbian exports of goods and services to the U.S. were just above $1.5 billion. The U.S. is currently our leading partner in the export of services, where we achieve the largest surplus, while exports of our goods have doubled over the past 5 years and in 2022 exceed 500 million U.S. dollars.

The U.S. is among the leading foreign investors in Serbia. Investments by the U.S. companies have come close to 4 billion U.S. dollars. These investments were implemented in several sectors - automotive industry, telecommunications, IT services, food industry, tourism, and hospitality industry.

Despite many global challenges in the past period, the economic relations between Serbia and the U.S. have not weakened. On the contrary, our economic cooperation is developing very dynamically and in different spheres. Thanks to the arrival of companies such as Microsoft and NCR and the opening of their campuses, Serbia has become a regional technological centre, and the consolidation trend in the field of information and communication technologies (ICT) has brought acquisitions in the rapidly growing and lucrative field of the “gaming software” production. This segment of the software industry is dominated by the U.S. companies (Nordeus - Take two, 3Lateral - Epic Games, etc.).

American companies in Serbia currently employ about 32,000 workers, half of which in the automobile industry, a sector that has strategic importance for the further economic prosperity of Serbia, the growth of our industrial base and exports worldwide, and even greater integration of Serbian companies into the European and global supply chains.

Ladies and gentlemen,

We have gathered here at the initiative of an American business association. Present here are representatives of some of the leading U.S. companies, but I must also refer to the quality of the political relations between Serbia and the U.S. Recently, our two countries celebrated 140 years since the establishment of diplomatic relations, and it was an opportunity to rationally recapitulate the history of our cooperation. Except for a short period in the recent history, our relations have always been marked by mutual trust and understanding, and that is why this jubilee was a good opportunity to open a new chapter in the Serbian-American relations, which, I am convinced, will yield significant political and economic results in the future.

Full membership in the European Union remains Serbia's central foreign policy commitment, but the building of political and economic cooperation with the U.S. is a no less important strategic goal. Serbia is and will be a country where both Americans and American capital are welcome, and we will provide the most favourable business environment for investors from the U.S. This can be confirmed by numerous American business systems that have been operating in Serbia for years and that, I am convinced, will share authentic impressions and be the most convincing promoters of my country.

Finally, I need to briefly explain why investments from the U.S. are important to Serbia, a country where so many companies from all over the world are successfully operating today. American companies bring not only jobs, but also modern business models without which no country can count on success in the integrated worldwide economy. The U.S. investors give us examples of how large corporate systems work and how the economy based on knowledge and innovation contributes to the inclusion of young educated people. This is all a long-term and a far more significant benefit for a country than taxes and contributions collected from employees in foreign companies. It is also a support for the inflow of young staff and prevailing upon them to stay. Let me be clear – Serbia is adamant on its path to prosperity and development, and I am convinced that we will manage to find a common goal and common interest on that path with our American partners and friends.

In this sense, I hope that the visit by representatives of the business delegation organised by the American-Central European Business Association (ACEBA) will bring forth new business projects and agreements with the Serbian economy, because the opportunities for establishing and developing cooperation are truly manifold. In that regard, I look forward to hearing about your business interests and plans, and I am open to your questions.