Dr. Herbert PreclikCommercial Counsellor for Serbia,

Macedonia and Montenegro

Success Stories of Austrian Multinational Companies in Serbia, Macedonia and Montenegro

Serbia 10 Mio. Inh.

88.361 km2

Ø ~ 250 €/M

Macedonia 2,06 Mio. Inh.

25.333 km2

Ø ~ 221 €/M

Montenegro 0,63 Mio. Inh.

13.812 km2

Ø ~ 300 €/M

Facts & FiguresBusiness LocationOpportunities & Potentials

Agenda

GDP Growth - Serbia

5,2 5,14,5

2,4

9,3

6,3 6,7

0

2

4

6

8

10

2000 2001 2002 2003 2004 2005 2006

GDP Growth %Source: NBS

GDP Growth - Mazedonien

4,6

-4,5

0,9

2,8

4,13,6 4

-6

-4

-2

0

2

4

6

2000 2001 2002 2003 2004 2005 2006

GDP Growth %Source: WIIW

GDP Growth - Montenegro

2,2

3,1

1,72,3

3,74,2

5

0

2

4

6

2000 2001 2002 2003 2004 2005 2006

GDP Growth %Source: WIIW

Inflation - Serbia

45,5

111,9

40,7

14,87,8

13,7 17,79,1

0

20

40

60

80

100

120

1999 2000 2001 2002 2003 2004 2005 2006

Inflation %Source: NBS

Inflation - Macedonia

5,8

1,81,2

0,9

2,1

1

0

1

2

3

4

5

6

7

2000 2002 2003 2004 2005 2006

Inflation %Source: WIIW

Inflation - Montenegro

24,8

28

16

6,7

2,4 1,8 30

10

20

30

2000 2001 2002 2003 2004 2005 2006

Inflation %Source: WIIW

Unemployment - Serbia

13,3 12,1 12,2 13,3 14,618,5

20,8

0

10

20

30

40

1999 2000 2001 2002 2003 2004 2005

Unemployment Rate %Source: NBS

Unemployment - Macedonia

32,3 31,9

36,7 37,2 36,5 36,5

20

30

40

50

2000 2002 2003 2004 2005 2006

Unemployment Rate %Source: WIIW

Unemployment Rate - Montenegro

20,7 22

27,7 28 28

0

10

20

30

40

2002 2003 2004 2005 2006

Unemployment Rate %Source: WIIW

Current Account - Serbia

0

5

10

15

2004 2005 2006

Bil.

US$

Imports Exports Remittance FDI

Source: WIIW, Worldbank, SIEPA

Current Account - Macedonia

0

1

2

3

4

2003 2004 2005

Bil.

EUR

Imports Exports Remittance FDI

Source: WIIW

Current Account - Montenegro

0

0,5

1

1,5

2004 2005 2006

Bil.

EUR

Imports Exports Remittance FDI

Source: WIIW

0

200

400

600

PortugalFinland

Macedonia SCGBulgaria

Mio

. Eu

ro

2003 2004 2005 2006

Austrian Exports

Source: Export Data Base

Automotive Components - Costs

10092

83

61 58 58

44

0

20

40

60

80

100

120

HungaryCroatia

Czech Rep BiH

Macedonia

Slowakia SCG

Inde

x Po

ints

includes labor costs, property costs & utility

costs

Source: MIGA

Food Processing - Costs

101

85

63 5953 51

35

0

20

40

60

80

100

120

Croatia

Czech Rep BiHSlowakia SCG

Macedonia

Albania

Inde

x Po

ints

Source: MIGA

includes labor costs, property costs & utility

costs

Average Labor Costs - Manufacture

0

5000

10000

15000

20000

BiHKroatie

nSlowake

i

Mazedonien SCG

Albanien

Technical Skilled Unskilled

Annual cost to employer, includes

gross salary & Social Security, €

Source: MIGA

Income/Wage Tax

0

5

10

15

20

25

30

35

Serbia Montenegro Macedonia Hungary Croatia

Income Tax Wage Tax

Source: SIEPA, MACInvest, MIPA

Starting a Business

12 1015

510

49

15

24

11

1813,4

6 6,6 5,3 7,4

0

10

20

30

40

50

CroatiaSerbia

MontenegroRumania

Macedonia

Procedures Duration Cost %Source: World Bank

Investment Climate - Serbia

Investments despite political development booming (Hemopharm, Telenor)

Finalization of SAA with European Union crucial

Political struggle (Constitution, Kosovo Status)

Investment Climate - Macedonia

Little Interest /Little InvestmentSteady & Sustainable growthPolitical Stability & Reforms

Investment Climate - Montenegro

Conclusion of SAA with European Union very important

Political Stability after ElectionsMotivation after Independence

Austrian Success Story

BanksInsuranceLeasingConstructionPorsche, OMV, Henkel, ATB

Austrian Success Story – Banks

Total Assets (06/2006) in Mio.

Euro

Source: NBS

Austrian Success Story – Banks

Deposits & Borrowings (06/2006)

in Mio. Euro

Source: NBS

Trust & Sympathy

Austria`s Advantage

Acceptance of Austrian BrandsAustrian QualityMentality and UnderstandingCommon History

Opportunities - Infrastructure

Corridor VII &

X

Opportunities

Environmental TechnologyManufacturingFood Processing

Austrian Support

BanksAttorneysInsurance CompaniesTax ConsultantsAustrian Embassy Belgrade –

Commercial Section Offices in Podgorica, Pristina & Skopje

Service for Austrian Companies

Market EntryMarket SupportInvestment Consulting

Austrian Embassy Belgrade – Commercial Section

Email. belgrade@austriantrade.orgWeb. www.austriantrade.org

Regional Offices

Podgorica, Pristina & Skopje.