The net inflow of foreign direct investments (FDI) in Serbia for the eight months of this year amounted to 1.66 billion euros or 28.9 percent less than in the same period last year, it was announced today in a new issue bulletin “Macroeconomic Analysis and Trends” (MAT).
The inflow on the basis of FDI of non-residents to Serbia amounted to 1.72 billion euros and was lower by 807.5 million euros or 31.9 percent. The net inflow of portfolio investments amounted to 1.4 billion euros and was higher by 1.2 billion euros, the magazine states.
The net outflow on the basis of other investments, which include cash and deposits, financial loans and trade loans from January to August 2020, amounted to one billion euros.
Within other investments, there was an increase in deposits of domestic commercial banks abroad in the amount of 457.5 million euros.
In the period January-August 2020, the net credit liabilities of commercial banks increased by 625.2 million euros and companies by 290.6 million euros.
In that period, the state reduced net credit liabilities by 60.3 million euros. Receivables from trade credits, ie uncollected exports of goods, increased by around 673 million euros, while liabilities from unpaid imports of goods decreased in the amount of 808.4 million euros.
“The fact is that the inflow of FDI to Serbia has decreased due to the Covid-19 pandemic compared to last year, but less compared to global FDI flows, where a decline of 49 percent was recorded,” the MAT stated.
It is added that “it is significant that the net inflow of FDI in Serbia, in the period January-August this year, enables full coverage of the current account deficit of almost 104 percent.”
According to initial estimates, about 60 percent of FDI is invested in tradable sectors, primarily manufacturing (32.9 percent) and transport (20.7), followed by construction (13.7) and the financial sector (seven percent).
Most investments in Serbia came from European countries, from EU countries about 68.4 percent and Russia about 5.3 percent and Asian countries, about 20.2 percent, primarily from China, about 18.9 percent, N1 reports.
