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The Government of the Republic of Serbia

In the service of citizens

Foreign trade increases in first seven months by 23%

Belgrade, 31 August 2006

The Serbian Statistical Office stated today that Serbia's overall foreign trade in the period from January to July 2006 totalled $9871.6 million, up 23% compared to the same period in 2005.

Expressed in euros, foreign trade reached €7980.4 million, which is an increase of over 26.4%% against the same period last year.

Exports stood at $3009.7 million, up 22.6% compared to the same period last year, while imports totalled $6861.9 million, a 23.1% increase in relation to the same period in 2005.

Expressed in euros, exports jumped 26.2% to €2431.9 million, while imports went up 26.4% to €5548.5 million in relation to the same period previous year.

Montenegro has become a member of the United Nations, therefore an internationally recognised state, but the Serbian Statistical Office, according to international standards still cannot include it in results in foreign trade. It is necessary for Montenegro to receive an international code for customs procedures and become part of the list of countries with which Serbia has the extrastat trade system.

If these foreign trade statistics were to be included the total value of Serbia’s foreign trade expressed in euros would be worth €8296.6 million. Exports would be worth €2681.0 million, imports €5615.6, and the trade deficit would stand at €2934.6 million.

Increased imports in the past seven months were a result of the import of energy sources. Namely, the import of gas, oil, electricity, coke, butane and diesel in the first seven months stand at $1197 million, making 21.6% of the total import.

Furthermore, the increase is also due to copper and iron ores import ($182 million), which are used in the production of elementary and other metals, and at this moment the prices of these ores are favourable.

Increased demand (public and private spending) also bore influence on the rise in imports. The increased availability of loans resulted in an increase in demand, which in turn affected imports. This is confirmed by the fact that the import of road vehicles in the period January-July was $520 million, which is 7.6% of the total import.

The increase in exports is a result of privatisation and restructuring of enterprises, and signed and ratified agreements on free trade with countries signatory to the Stability Pact.

Increased exports are a result of trade surplus in exchange of food products (export of vegetables and fruits $140 million, bread-grain and bread-grain products $122 million, in which corn was $76 million and sugar $87 million). The trade surplus in the import of ready-made textile goods also played a role in increase in exports, thanks to the agreement signed with the EU and preferential status of Serbian goods, as well as by an increase in world prices of basic metals and general economic activity.

The trade deficit for the period January-July 2006 stood at $3852.2 million, up by 23.4% against the same period last year. Expressed in euros, the deficit stood at €3116.5 million, up by 26.6% against the same period in 2005.

Expressed in dollars the exports-to-imports ratio was 43.9%, showing a fall against the same period last year, when it stood at 44%. Expressed in euros, the ratio was 43.8%, whereas last year it was 43.9%.

The most exported items in the period January-July 2006 were intermediate goods accounting for 69.4% ($2087.6 million), followed by consumer goods, which made up 25.4% ($764.3 million) and equipment, making up 5.2% ($157.6 million) of total exports.

Imports were dominated by intermediate goods accounting for 63.3% ($4344.7 million), followed by consumer goods, 21.3% ($1458.4 million) and equipment, 15.4% ($1058.8 million).

Major importers of goods from Serbia were Italy ($508.5 million), Bosnia-Herzegovina ($379.3 million) and Germany ($332.7 million). The largest exporters to Serbia were Russia ($1142.9 million), Germany ($658.7 million) and Italy ($596.9 million).

The greatest foreign trade was recorded in commerce with the EU, which accounted for more than half of total trade. The foreign trade surplus realised in commerce with Bosnia-Herzegovina was $216 million, whereas with Italy the foreign trade is more balanced than last year.

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

According to Standard International Trade Classification (SITC) most exported items are iron and steel ($442 million), coloured metals ($314 million), garments ($136 million), various ready-to-use products ($163 million) vegetables and fruits ($140 million) and India-rubber products ($132 million). Export in these five sections made up 39.6% of overall exports.

The top five sectors with largest imports are oil and oil derivatives ($873 million), road vehicles ($520 million), natural and industrial gas ($393 million) industrial machines for general use ($328 million) and electric machines, apparatus and equipment ($264 million), and imports of these articles comprises 34.7% of total imports.