Crisis in Italy could affect Serbian economy, experts say

The crisis in Italy could have negative effects on Serbia's exports, investments and banking sector, but the situation is not dramatic, Tanjug has learned. The right way to solve the problems in this eurozone country should soon be found, Tanjug learned from its sources on Saturday. Crisis in Italy could affect Serbian economy, experts say Serbian Chamber of commerce (PKS) Deputy President Mihailo Vesovic said that the current situation in Italy's economy could constitute a concern to Serbian economy, since Serbia is Italy's top export partner. Noting that 12.5 percent of Serbia's total exports goes to Italy, Vesovic added that Italy and Serbia maintained strong economic ties and shared numerous joint businesses and investments, whose realization could be slowed down by the crisis. He stressed that the Italian crisis could have even more dangerous influence on the banking sector in Serbia because two Italian banks, Banca Intesa and Findomestic Banca, held 25 per cent of the Serbian bank market. “This all indicates that it would be good news for Serbia if Italy found a way to overcome the current crisis,” the PKS deputy president underscored. For years now, Italy has been Serbia's top partner in the area of foreign exchange. The two countries' exchange, which last year totaled USD 2.55bn, is expected to reach a record USD 3bn in 2011. Italy takes the sixth place on the list of investors in Serbia, with around 250 Italian companies that employ 20.000 people on the local market, thus harvesting USD 2.5bn in Serbia annually. Kragujevac Mayor Veroljub Stevanovic believes that the economic crisis in Italy would not affect Fiat's investments in the Kragujevac car factory, and hopes the country will overcome the crisis soon. He does not expect to see any halts when it comes to investments because Fiat is a multinational company that operates well and has its seat in Italy. Stevanovic also expressed hope that Italy would overcome the current crisis soon because it was a country with considerable potentials. Economic expert Goran Nikolic told Tanjug that the Italian crisis could have negative effects on Serbia's exports, investments and banking sector. “Deterioration of situation in the area of economy could reduce the readiness of Italian banks to withdraw funds from the central and reduce their loan placements,” Nikolic said. Economic analyst Miroslav Zdravkovic underscored that the growth of Italy's export to Serbia and other former Yugoslav republics was the most important factor for the recovery of Italian economy in 2010 and 2011. He indicated that crises in Greece, Italy and Spain were slowing down the pace of recovery of entire Europe, including Serbia, adding that the start of Fiat's production activities in Serbia should encourage industrial recovery of the local economy.

Crisis in Italy could affect Serbian economy, experts say

Serbian Chamber of commerce (PKS) Deputy President Mihailo Vesović said that the current situation in Italy's economy could constitute a concern to Serbian economy, since Serbia is Italy's top export partner.

Noting that 12.5 percent of Serbia's total exports goes to Italy, Vesović added that Italy and Serbia maintained strong economic ties and shared numerous joint businesses and investments, whose realization could be slowed down by the crisis.

He stressed that the Italian crisis could have even more dangerous influence on the banking sector in Serbia because two Italian banks, Banca Intesa and Findomestic Banca, held 25 per cent of the Serbian bank market.

“This all indicates that it would be good news for Serbia if Italy found a way to overcome the current crisis,” the PKS deputy president underscored.

For years now, Italy has been Serbia's top partner in the area of foreign exchange. The two countries' exchange, which last year totaled USD 2.55bn, is expected to reach a record USD 3bn in 2011.

Italy takes the sixth place on the list of investors in Serbia, with around 250 Italian companies that employ 20.000 people on the local market, thus harvesting USD 2.5bn in Serbia annually.

Kragujevac Mayor Veroljub Stevanović believes that the economic crisis in Italy would not affect Fiat's investments in the Kragujevac car factory, and hopes the country will overcome the crisis soon.

He does not expect to see any halts when it comes to investments because Fiat is a multinational company that operates well and has its seat in Italy. Stevanović also expressed hope that Italy would overcome the current crisis soon because it was a country with considerable potentials.

Economic expert Goran Nikolić told Tanjug that the Italian crisis could have negative effects on Serbia's exports, investments and banking sector.

“Deterioration of situation in the area of economy could reduce the readiness of Italian banks to withdraw funds from the central and reduce their loan placements,” Nikolić said.

Economic analyst Miroslav Zdravković underscored that the growth of Italy's export to Serbia and other former Yugoslav republics was the most important factor for the recovery of Italian economy in 2010 and 2011.

He indicated that crises in Greece, Italy and Spain were slowing down the pace of recovery of entire Europe, including Serbia, adding that the start of Fiat's production activities in Serbia should encourage industrial recovery of the local economy.