Republic of Serbia and Republic of Montenegro – NEWSLETTER June 2016 Belgrade, June 2016 Office of the Commercial Attache -Embassy of Belgium Our office represents the three regions of Belgium in Serbia and Montenegro and the three regional agencies specialized in foreign trade - Brussels Invest & Export (www.brussels-export.be ), Wallonia Foreign Trade and Investment Agency (www.awex.be ) and Flanders Investment and Trade (http://www.flandersinvestmentandtrade.com) Royal Embassy of the Kingdom of Belgium – Trade Representations www.brussels-in-serbia.com Beogradska 4 11000 Belgrade Serbia Phone ++ 381 11 308 55 70 Fax ++ 381 11 344 56 49 Email [email protected] Contents Marijana Milosevic Tufegdzic Economic Overview Serbia 2 Economic and Trade Counsellor Business News Serbia 6 Fairs -Serbia 11 This newsletter provides the latest business news from Serbia and from Montenegro, offers from Belgian companies as well as opportunities of Useful contacts -Serbia 13 these markets. Economic Overview Montenegro 14 Our intention is to provide you with updated market development news and opportunities, economic projections and demands that may ease your Business News - Montenegro 18 decision on the entrance to the Serbian and to the Montenegrin markets. Fairs and business networking gatherings are also provided with its dates Fairs –Montenegro 20 and places. Useful contacts-Montenegro 21 Useful contacts and links for more information are provided for your more profound analysis of the Serbian and Montenegrin markets’ trends. Our office remains at your disposal for all additional information. www.brussels-in-serbia.com Page 1 Republic of Serbia and Republic of Montenegro – NEWSLETTER June 2016 SERBIA Key macroeconomic indicators Q1 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Real GDP growth (in %)1) 5.9 5.4 -3.1 0.6 1.4 -1.0 2.6 -1.8 0.74 3.5 Consumer prices (in %, relative to the 11.0 8.6 6.6 10.3 7.0 12.2 2.2 1.7 1.5 0.6 same month a year earlier)2) NBS foreign exchange reserves 9,634 8,162 10,602 10,002 12,058 10,915 11,189 9,907 10,378 9,501 (in EUR million) Exports (in EUR million)3) 8,110 9,583 8,043 9,515 11,145 11,469 13,937 14,451 15,618 3,942⁶⁾ - growth rate in % compared - 18.2 -16.1 18.3 17.1 2.9 21.5 3.7 8.1 11.7 to a year earlier Imports (in EUR million)3) 15,468 18,267 13,099 14,244 16,487 16,992 17,782 18,096 18,899 4,513⁶⁾ - growth rate in % compared - 18.1 -28.3 8.7 15.7 3.1 4.7 1.8 4.4 1.7 to a year earlier 3) Current account balance (in EUR million) -5,474 -7,125 -2,032 -2,037 -3,656 -3,671 -2,098 -1,985 -1577 -249⁶⁾ as % of GDP -18.6 -21.1 -6.6 -6.8 -10.9 -11.6 -6.1 -6.0 -4.8 -3.3 Unemployment according to the Survey 18.1 13.6 16.1 19.2 23.0 23.9 22.1 19,2⁷⁾ 17.7 (in %) Wages 347.1 400.5 337.4 330.1 372.5 364.5 388.6 379.3 368.0 353.7 (average for the period, in EUR) RS budget deficit/surplus -1.6 -1.7 -3.2 -3.4 -4.0 -5.9 -5.2 -6.3 -2.9 -1.0 (in % of GDP)4) Consolidated fiscal result -1.9 -2.6 -4.4 -4.6 -4.8 -6.8 -5.5 -6.6 -3.8 -1.7 (in % of GDP)4) RS public debt, (central government, in 29.9 28.3 32.8 41.8 45.4 56.2 59.6 70.4 75.9 74.8 % of GDP) RSD/USD exchange rate 58.39 55.76 67.47 77.91 73.34 88.12 85.17 88.54 108.85 111.37 (period average) RSD/USD exchange rate 53.73 62.90 66.73 79.28 80.87 86.18 83.13 99.46 111.25 108.60 (end of period) RSD/EUR exchange rate 79.96 81.44 93.95 103.04 101.95 113.13 113.14 117.31 120.73 122.87 (period average) RSD/EUR exchange rate 79.24 88.60 95.89 105.50 104.64 113.72 114.64 120.96 121.63 122.92 (end of period) MEMORANDUM: 5) GDP (in EUR million) 29,452 33,705 30,655 29,766 33,424 31,683 34,263 33,319 32,908 7.522⁶⁾ . The real GDP growth in the first quarter of 2016, compared to the corresponding period of the previous year, amounted to 3.5%. According to seasonally adjusted GDP data, the economic performance increased by 1.6% in the first quarter of 2016, as compared to the previous quarter www.brussels-in-serbia.com Page 2 Republic of Serbia and Republic of Montenegro – NEWSLETTER June 2016 Foreign Trade January-March 2016 The overall external trade in the Republic of Serbia for the period January - March The major foreign trade partners in 2016 rose 4.3% to $ 7811.9 million compared to the same period 2015, expressed in exports in 01-03.2016 period were: EUR the overall external trade rose 6.2% to € 7061.0 million . - Italy (USD 562.3 million) - Germany (USD 466.2 million), -- The value of exports amounted to $ 3412.3 million, which was 9.2% increase when Bosnia and Herzegovina (USD 275.4 compared to the same period last year, while the value of imports amounted to million) $4399.6 million, which was 0.7% increase relative to the same period last year. - Russian Federation (USD 180.7 million) Expressed in Euros, the value of exports amounted to € 3084.4 million, which was the - Romania (USD 176.8 million) increase of 11.2%, compared to the same period last year. The value of imports - amounted to € 3976.6 million, which was 2.6% increase when compared to the same period last year. The major foreign trade partners in imports in the same period were: The deficit amounted to$ 987.2 million, which was a decrease of 20.4% in relation to - Germany (USD 560.2 million) the same period last year. The deficit expressed in Euros amounted to € 892.2 - Italy (USD 468 million) million, which was a decrease of 18.9% compared to the same period last year. - Russian Federation (USD 392.6 million) The export - import ratio equaled 77.6% and was higher if compared to the same - China (USD 387.2 million) period last year when it was 71.6%. -Hungary (USD 200.4 million) The most exported product groups were: European Union member countries -road vehicles (USD 439.4 million), account for 65.2% of total external -electrical machines and apparatus (USD 271.1 million) trade. -fruit and vegetables (USD 181 million) -cereals and produces thereof (USD 165 million) -non-ferrous metals (USD 152.4 million). These five sections accounted for 35.4% of the overall exports. The most imported product groups were -: road vehicles (USD 467.7 million) - oil and oil derivatives (USD 192.8 million) - natural gas (USD 142.6 million) - industrial machines for general use (USD 142.1 million ) and these accounted for 25.7% of the overall imports. Section of unclassified goods, now also involving customs storage goods and goods in free zone, has share of 17.5% in total imports. www.brussels-in-serbia.com Page 3 Republic of Serbia and Republic of Montenegro – NEWSLETTER June 2016 the export from Belgium to Serbia for the period of January – March 2016 rose 21.7% to €102.9 million, while the value of exports from Serbia to Belgium rose 35.7.7% to €48.8 million SERBIA BELGIUM (EXPORT – IMPORT January-March 2016) in € 000 Index 14/15 Export Import Export Import The most exported products to TOTAL (JANUARY –MARCH 2016 ) 48867 102942 135.7 121.7 Belgium from Serbia in the 0 LIVE STOCK AND FOOD mentioned period were 0 Live stock - 36 - 153.9 1 Meat and Meat preparations - 34 - 45.3 - Road vehicles - 278 - 91.5 - Vegetables and fruits 2 Milk and Milk preparations - Tobacco and tobacco products 3 Fish and seafood - Fibers, textiles, and textile 4 Grains and products 101 115 87.2 85.9 products 5 Vegetables and fruits 7221 874 125.1 62.5 - Medical and pharmaceutical 6 Sugar, sugar products and honey 298 217 - 101.7 products 8 716 - 157.9 - 7 Coffee, tea, cocoa and spices 8 Cattle feed (except wheat in granules) 61 278 48.4 53.2 9 Different products for feeding 101 253 17.6 53.1 1 BEVERAGES AND TOBACCO 11 Beverages 11 124 53.7 49.4 12 Tobacco and tobacco products 5434 16909 82.7 315.5 2 RAW MATERIALS EXCEPT FUELS 21 Leather and furs - 72 - - 22 Oiling seeds and fruits 420 0 691.2 2.5 23 Raw caoutchouc 60 482 - 137.6 24 Cork and wood 71 27 68.0 16.2 25 Paper and cellulose - 3 - - 26 Textile fibers and droppings - 2716 - 170.7 27 Raw fertilizers and minerals 0 20 966.7 * 28 Metal ores and metal scrap 41 - - - 29 Animal and herbal raw materials 27 1618 279.7 64.0 3 MINERAL FUELS AND LUBRICANTS 32 Coal - 7 - 202.0 33 Oil and oil derivate - 1449 0.0 129.4 34 Gas, natural and industrial 4 ANIMAL AND HERBAL OILS AND GREASES www.brussels-in-serbia.com Page 4 Republic of Serbia and Republic of Montenegro – NEWSLETTER June 2016 41 Animal and herbal oils and fats - 4 - 28.7 42 Animal and herbal oils and fats, solid 397 10 * - Animal and herbal oils and fats, 43 processed 5 CHEMICAL PRODUCTS 51 Organic chemical products 0 721 - 62.2 0 153 8.7 160.0 52 Non-organic chemical products 53 Products for coloring 1 660 - 126.2 54 Medical and pharmaceutical products 1911 4384 57.4 64.1 Etheric oils, perfumes, and toilet 174 513 38.4 72.0 The most imported to Serbia from 55 products Belgium in 01-03.2016 period - 134 - 13.8 were 56 Fertilizers (except raw ones) 57 Plastic materials in primary shapes 400 2761 216.6 37.7 58 Plastic mass in other shapes 90 875 114.4 145.1 Chemical materials and products, 98 3494 59.8 63.2 - Road vehicles 59 unmentioned - Tobacco and tobacco products 61 Leather, products of leather and fur 1380 0 235.7 0.3 - Medical and 251 941 69.3 244.5 pharmaceutical 62 Caoutchouc products products 63 Products of cork and wood 1011 82 103.3 40.3 - Chemical materials Paper, cardboard and cellulose 463 291 131.6 91.0 and products 64 products - Plastic materials in 65 Fibers, textiles, and textile products 4161 1737 111.3 89.6 primary shapes 66 Products of nonmetal minerals 36 450 542.1 146.4 112 786 6.2 43.9 67 Steel and iron 68 Non-ferrous metals 430 296 24.9 35.0 2663 445 146.5 70.3 69 Metal products, non-mentioned