The people of Serbia have no cause to believe that they will be earning more, spending less or finding a better job. Chances are greater that their company turns insolvent or winds up the year with an overdraft. Even if the merchants, in expectation of the New Year cash inflow, lower their prices, the difference will be paid through costlier loans, because it all says that the Euro will be more expensive.
In the past few days the Euro has been picking up strength daily against the domestic currency, bringing it closer to RSD 104 today. What will happen by the end of the year, they say at exchange offices, is ungrateful to predict but they believe that Serbia will enter 2012 with a rate of RSD 105 the most.
- We’re hoping that by the end of December it will be at the level of last year’s RSD 105– says for Novosti, Borislav Brujic, president of the Serbian Exchange Offices Association.
On the other hand, economists in the know say that the Euro will grow, if the Central Bank keeps lowering its reference interest rate. On the eve of the New Year’s holidays is expected a greater arrival of foreigners, with the Euro cheapening in the same period by RSD 2.
By the end of the year, prices in Serbia, with certain deviations, will be stable. Economists are expecting that owing to the poorer trade and drop in domestic purchasing power, certain groceries like oil, flour, meat could cheapen.
- As early as mid-December, there are traditional holiday discounts. They are usually up to 25% for not just food, different treats or drinks for the upcoming family celebrations but also for small house appliances, textiles, clothing, footwear – merchants say. There are already six month layaway payments so as to unburden the home budgets for a period of time.
No lowered prices were recorded at petrol stations this year. This trend of rising prices, judging by it all, will continue until New Year. On the other hand, the sale of new cars in Serbia has never been poorer. In the first quarter of 2011, the drop in sales of new cars against 2010 was 30%. No importers believe that things will pick up in November and December, despite unbelievable discounts.
Companies and entrepreneurs find it tougher to stay afloat. The number of those shut down top the ones that are newly incorporated. Since the start of 2011, the number of shut down companies was 8.345 and is expected to rise by the end of the year. The number of employed is again higher but luckily insignificant. There shouldn’t be any significant changes by the end of the year, but in 2012, this could continue with more layoffs. Tens of companies are considering this measure, surveys reveal.