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The Government of the Republic of Serbia

In the service of citizens

Serbia’s foreign trade grows 11.6 percent in January-July 2005

Belgrade, 1 September 2005

The Serbian Statistics Office has said that total foreign trade in the year through July amounted to $8.01 billion, rising 11.6 percent from a year earlier. Expressed in euros, the volume of trade grew 7.5 percent to €6.30 billion.

Exports totalled $2.5 billion, surging 47.2 percent from a year earlier, while imports edged up 0.6 percent to $5.51 billion. Expressed in euros, exports jumped 41.6 percent to €1.96 billion, while imports declined 3.1 percent to €4.33 billion.

The decline in imports in the first seven months of the year was due to decreased aggregate spending mainly because of a decline in real wages and monetary and credit policy measures.

Value added tax (VAT) also helped to reduce imports as importers bought large quantities of goods in December 2004 ahead of the launch of the new tax. VAT also affected export results, because exporters are now declaring real values of their shipments in order to claim VAT refunds.

Surging exports were also driven by the initial effects of privatisation and the restructuring of companies as well as by free trade agreements with countries who are signatories of the Southeast Europe Stability Pact.

The 0.6 percent increase in the value of imports expressed in US dollars was due to changes in the value of America’s currency against the euro.

The trade deficit in the January to July period was $3.01 billion, down 20.4 percent from a year earlier. Expressed in euros, the gap narrowed by 23.1 percent to €2.37 billion.

Exports-to-imports ratio was 45.4 percent, up from 31 percent a year earlier.

The most exported items were intermediate goods, accounting for 66.1 percent of overall exports, and they were followed by consumer goods, which made up 28.8 percent of total exports.

Imports were also dominated by intermediate goods, 62.7 percent, consumer goods, 22.6 percent, and equipment, 14.6 percent of overall imports.

Major importers of Serbian goods were Italy ($393.9 million), Bosnia-Herzegovina ($387.1 million), and Germany ($260.2 million).

The largest exporters to Serbia were Russia ($904.2 million), Germany ($576.9 million), and Italy ($491.8 million).

The biggest surplus was recorded in commerce with Bosnia-Herzegovina at $229.2 million. Thanks to a free trade agreement, Serbia also posted a surplus in trade with Macedonia. The widest gap remained in trade with Russia because energy exports, mainly oil and natural gas.