In the first eight months, Serbia had a net inflow of foreign direct investments (FDI) of 1.66 billion euros, which is 28.9 percent less than in the same period last year, it is stated in the new issue of “Macroeconomic Analysis and Trends” of MAT.
“The fact is that the inflow of FDI to Serbia due to the Covid-19 pandemic has decreased compared to last year, but the contraction is weaker compared to global FDI flows, where, as we stated, there has been a 49% drop in FDI, especially compared to our European environment”.
The net inflow of foreign direct investment in Serbia was 677.6 million euros lower in the first eight months than in the same period in 2019.
As stated, the inflow on the basis of foreign direct investments of non-residents in Serbia amounted to 1.72 billion euros, which is less by 807.5 million euros or 31.9 percent.
The net inflow of portfolio investments (investments in securities) amounted to 1.4 billion euros or 1.2 billion euros more.
Net outflow on the basis of other investments (cash and deposits, financial loans and trade loans) amounted to one billion euros, while in the period January-August 2019, a net inflow of 846.4 million euros was recorded.
Within other investments, an increase in deposits of domestic commercial banks abroad in the amount of 457.5 million euros was recorded.
Also, in the period January-August 2020, there was an increase in net credit liabilities (net increase in financial liabilities) of commercial banks (in the amount of 625.2 million euros) and companies (in the amount of 290.6 million euros), while government sector recorded a decrease in net credit liabilities in the amount of 60.3 million euros.
Receivables on the basis of trade credits (receivables on the basis of uncollected exports of goods) increased by 672.9 million euros, while on the same basis a decrease in liabilities (on the basis of unpaid imports of goods) was recorded in the amount of 808.4 million euros.
MAT experts state that the net inflow of FDI to Serbia in the period January-August this year enables full coverage of the current account deficit (103.7 percent).
According to initial estimates, about 60 percent of FDI is invested in tradable sectors, primarily manufacturing (32.9 percent) and transport (20.7 percent), followed by construction (13.7 percent) and the financial sector (7.0). percent).
Most investments in Serbia came from European countries (about 68.4 percent from EU countries and about 5.3 percent from Russia) and Asian countries (about 20.2 percent), primarily China (about 18.9 percent), Nova reports.
