Serbia’s economy is recovering faster from the consequences of the pandemic than expected, in the first seven months of 2020, industrial production and foreign trade increased significantly, although they did not reach the 2019 average, the authors of the economic monthly “Macroeconomic Analysis and Forecasts” announced today.
“There are no clear indicators on the dynamics of investments, but it can be indirectly concluded that they are also recovering,” the MAT said.
It is added that consumer prices increased in July compared to June, which is not in line with seasonal characteristics and happened for the first time in 12 years.
In June, food prices went up by 1.2 percent, and in July, energy prices went up by 1.9 percent because the price of motor fuel and excise taxes increased by 5.5 percent.
The cumulative decline in industrial production from January to July was reportedly reduced to 1.4 percent, and the most important sector, the manufacturing industry, to 1.3 percent.
Agricultural products, beverages, textiles, processed wood and other products were imported
In the first half of the year, the pharmaceutical industry had the most stable growth of 15.8 percent, and at the end of June the growth stopped and in July the year-on-year decline was 3.9 percent, so that the increase for the seven months of 2020 was 12.6 percent.
In the sector of production of motor vehicles and trailers for the seven months of this year, the cumulative decline was 37.4 percent.
Foreign trade is improving, but far slower than industrial production, and the largest export from January to July was realized by the food sector, which sold goods for 996 million euros.
In the first seven months of this year, Serbia earned 880 million euros from the export of motor vehicles and trailers, 858 million euros from the export of electrical equipment, rubber and plastic products, 757 million euros from basic non-metals, and those sectors account for 46% of exports.
In July, the largest year-on-year decline in the value of exported base metals was achieved, by 38 million euros.
In July, imports increased year-on-year in 13 areas, but in eight by just over one percent, and agricultural products, beverages, textiles, processed wood and other products were imported.
In the first half of the year, the negative balance of foreign trade was 112 million euros, which is 4.5 percent higher.
The trade in services had a surplus of 120 million euros and increased by 31 percent.
The current account deficit in June was 195.7 million euros, or 38.6 percent less than in the same month in 2019, the MAT said.
In the first seven months of this year, the budget deficit amounted to 2.69 million euros, and only in July, 158 million euros, BiF reports.
