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The Government of the Republic of Serbia

In the service of citizens

Serbia’s foreign trade grows in January-October 2005

Belgrade, 30 November 2005

The Serbian Statistics Office said today that total foreign trade of Serbia in the period January-October 2005 amounted to $12.1 billion, rising 12.3 percent in relation to the same period last year.

Expressed in euros, the volume of foreign trade stood at €8.85 billion, marking an increase of 9.7 percent against the same period in 2004.

Exports totalled $3.65 billion, surging 35.3 percent from a year earlier, while imports rose 4.6 percent to $8.522 billion.

Expressed in euros, exports jumped 33 percent to €2.911 billion, while imports went up 2.3 percent to €6.798 billion against the same period in 2004.

The increase in imports in the first ten months of the current year was due to decreased aggregate spending mainly because of a decline in real wages, as well as stemming from monetary and credit policy measures, and the newly introduced value added tax (VAT).

Import of many goods planned for the beginning of the year was made in December 2004, ahead of the launch of the new tax, with a view to avoiding VAT payments by importers for the first couple of months of 2005. 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, by signed and ratified free trade agreements with countries who are signatories of the Stability Pact for South Eastern Europe, and by a food and ready-made textile goods trade surplus, thanks to the agreement signed with the EU.

The trade deficit in the January to October period was $4.862 billion, down by 10.6 percent from the same period a year earlier. Expressed in euros, the gap narrowed by 12.4 percent to €3.887 billion.

Exports-to-imports ratio was 42.9 percent, up from 33.2 percent from a year earlier. Expressed in euros the ratio is 42.8 percent, up from last year’s 33.2 percent.

The most exported items were intermediate goods, accounting for 66.8 percent ($2.443 billion) of overall exports, followed by consumer goods, which made up 27.9 percent ($1.019 million) and equipment, making up 5.3 percent ($196.6 million) of total exports.

Imports were also dominated by intermediate goods, 62.4 percent ($5.319 billion), consumer goods, 21.2 percent ($1.810 billion), and equipment, 16.4 percent ($1.393 billion) of overall imports.

Major importers of Serbian goods were Bosnia and Herzegovina ($589.4 million), Italy ($536.9 million), and Germany ($376.5 million).

The largest exporters to Serbia were Russia ($1.380 billion), Germany ($895.1 million), and Italy ($729.8 million).

The greatest portion of foreign trade was recorded in commerce with the EU, which accounted for more than half of total trade. Serbia has increased imports from Italy due to a loan for equipment import, but the overall trade ratio is more favourable than in 2004, while the biggest surplus was recorded in trade with Bosnia-Herzegovina, $354 million.

Thanks to the free trade agreement, as well as the competitiveness of Serbian products, a surplus has also been achieved in commerce with Macedonia, but deficit remained wide in commerce with Russia, due to energy imports, mainly oil and natural gas.