Republic of Serbia and Republic of Montenegro – NEWSLETTER September 2016 Belgrade, September 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 9 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 15 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 19 and places. Useful contacts-Montenegro 19 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 September 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⁾ GDP growth in Q2 1.8 percent. Real GDP growth in the second quarter of 2016, compared to the same period last year, amounted to 1.8 percent, the Statistical Office has announced. At the end of 2015, GDP growth was 0.8 percent. For 2016, the budget projected the GDP growth of 1.75 percent, but it is expected to be higher www.brussels-in-serbia.com Page 2 Republic of Serbia and Republic of Montenegro – NEWSLETTER September 2016 Foreign Trade January-June 2016 The overall external trade in the Republic of Serbia for the period January- June 2016 The major foreign trade partners in amounted $ 16852.2 million, an increase of 7.7% compared to the same period 2015; exports in 01-06.2016 period were: Expressed in euros it was € 15083.8 million - which was an increase of 7.7% - Italy (USD 1195 million) compared to the same period 2015. - Germany (USD 979.8 million), -- Bosnia and Herzegovina (USD 593.8 The value of exports amounted to $7346.8 million, up 10.2% when compared to the million) same period last year, while the value of imports amounted to $ 9505.4 million, which - Romania (USD 396 million)- was 5.8% increase relative to the same period last year. Russian Federation (USD 180.7 million) Expressed in Euros, the value of exports amounted to € 6575.3 million, up 10.2%, compared to the same period last year, while the value of imports rose 5.8% to The major foreign trade partners in € 8508.5 million. imports in the same period were: Germany (USD 1224.2 million), Italy The deficit amounted to $ 2158.6 million, which was a decrease of 6.7% in from the (USD 1028.0 million), the Russian same period last year. The deficit expressed in Euros amounted to €1933.2 million, Federation (USD 796.3 million), which was a decrease of 6.6% compared to the same period last year. China (USD 773.6 million) and Hungary (USD 438.3 million The export - import ratio equaled 77.3% and was higher if compared to the same period last year when it was 74.2%. European Union member countries account for 65.2% of total external The most exported product groups were: trade. -road vehicles ($ 924.4 million), -electrical machines and apparatus ($ 591.7 million) -fruit and vegetables ($ 396.5 million) -cereals and produces thereof ($ 347.9million) -non-ferrous metals ($ 327 million). These five sections accounted for 35.2% of the overall exports. road vehicles ($ 1054.8 million), The most imported product groups were -: road vehicles ($ 1054.87 million) million) -oil and oil derivatives ($ 514.8 million), -electrical machines and apparatus ($ 409.3 million) -medical and pharmaceutical products ($ 318.7 million) - industrial machines for general use ($ 315.8 million), and these accounted for 27.5% of the overall imports.. www.brussels-in-serbia.com Page 3 Republic of Serbia and Republic of Montenegro – NEWSLETTER September 2016 January - June 2016. Foreign Trade Serbia - Belgium Values in 000 EUR Index Exports Imports Exports Imports Total 89343 192184 131.7 116.7 00 Live animals other than animals of division 03 - 78 0.0 138.3 01 Meat and meat preparations - 182 - 71.5 02 Dairy products and birds eggs - 691 - 140.1 04 Cereals and cereal preparations 162 285 80.2 87.4 05 Vegetables and fruit 14558 1708 122.6 56.2 06 Sugar, sugar preparations and honey 29 8 547 - 82.3 07 Coffee, tea, cocoa, spices, and manufactures thereof 13 1279 - 132.6 08 Feeding stuff for animals (not including unmilled cereals) 181 655 143.7 75.0 09 Miscellaneous edible products and preparations 212 796 33.7 88.2 11 Beverages 34 376 108.8 74.0 12 Tobacco and tobacco manufactures 7751 29075 74.3 178.8 21 Hides,skins and furskins,raw - 72 - 155.7 22 Oil-seeds and oleaginous fruits 1318 0 295.6 3.9 23 Crude rubber (including syntetic and reclaimed) 60 1057 254.5 139.7 24 Cork and wood 186 71 106.5 42.3 25 Pulp and waste paper - 3 - - 26 Textile fibres and their wastes 75 6238 66.9 128.7 Crude fertilizers, other than those of Division 56, and 27 crude minerals 0 26 966.7 44.8 28 Metalliferous ores and metal scrap 96 0 - - 29 Crude animal and vegetable materials, n.e.s. 80 1961 191.5 77.0 32 Coal, coke and briquettes - 12 - 310.8 33 Petroleum, petroleum products and related materials 0 3001 116.8 125.6 34 Gas, natural and manufactured - 3 - * 41 Animal oils and fats - 4 - 11.7 Fixed vegetable fats and oils, crude, refined or 42 fractionated 689 33 * - Animal or vegetable fats and oils, processed; waxes of 43 animal or vegetable origin, n.e.s. - 9 - - 51 Organic chemicals 457 1646 * 57.6 52 Inorganic chemicals 1 278 20.0 148.3 53 Dyeing, tanning and colouring materials 1 1382 135.5 92.7 54 Medicinal and pharmaceutical products 4750 7472 89.6 59.2 Essential oils and resinoids and perfume 55 materials;toilet,polishing and cleansing preparations 501 1061 77.8 76.9 56 Fertilizers(other than crude) - 140 - 12.1 57 Plastics in primary forms 762 9799 127.1 59.7 58 Plastics in non-primary forms 153 1784 103.7 120.8 www.brussels-in-serbia.com Page 4 Republic of Serbia and Republic of Montenegro – NEWSLETTER September 2016 Chemical materials and products, not elsewhere 59 specified 359 5225 64.5 58.5 Leather,leather manufactures, n.e.s., and dressed 61 furskins 2189 1 193.5 2.4 62 Rubber manufactures, not elsewhere specified 639 2332 119.6 177.9 63 Cork and wood manufactures (excluding furniture) 1789 371 93.0 84.0 Paper,paperboard and articles of paper pulp, of paper or 64 of paperboard 1029 507 164.9 94.0 Textile yarn,fabrics,made-up articles, n.e.s., and related 65 products 8214 4180 114.0 104.3 Non-metallic mineral manufactures, not elsewhere 66 specified 48 904 448.2 108.8 67 Iron and steel 262 1500 11.5 40.2 68 Non-ferrous metals 847 1177 26.1 60.0 69 Manufactures of metals,not elsewhere specified 5428 1325 164.6 122.0 71 Power-generating machinery and equipment 38 152 181.4 17.6 72 Machinery specialized for particular industries 217 6866 73.3 137.3 73 Metalworking machinery 16 899 2.0 164.9 General industrial machinery and equipment, n.e.s., and 74 machine parts, n.e.s.