What could be the benefits of Serbia, how can Serbia recover?
Inflation rate in Serbia is at 2.1% and at 1.8% in Austria
Consumer price index (CPI) is at 180.2 in Serbia and at 110 in Austria (Serbia : Austria +63%)
If we compare consumer prices and inflation indicators to prime and key interest rates, then we might wonder:
On June 12th serbian central bank cuts its prime rates by (- 0.50) to very proud 8.50%.
Before we enjoy too fast over high interest rates in Serbia, we have at first take a look at the exchange rate of Euro to serbian Dinar:Well the € climbed up from 114,5 one year ago to 115,5 (that’s about +0.8% not much compared to prime rate difference). However, other things in that forex chart scare me a little bit.
Hätte jemand vor einem Jahr Geld auf ein Sparbuch in serbischen Dinar gelegt, dann hätte das 8,5% Guthabenzinsen und -0,8 Wechselkursverlust zum Euro gebracht.
The biggest advantage of Serbia are very appropriate business friendly taxes.
Social security contributions are almost as high as in Austria. (But don’t forget, that Serbia still has to provide war disability pensions for heavy wounded soldiers as part from social security.)