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Coronavirus outbreak impacts Serbia's exports - Erste

Author Radomir Ralev
Coronavirus outbreak impacts Serbia's exports - Erste Author: Georgi Georgiev. License: All rights reserved.

BELGRADE (Serbia), March 4 (SeeNews) - The coronavirus outbreak is having a negative effect on Serbia's exports, while the strong construction cycle implies yet another year with double-digit growth of imports, Erste Group said.

"Already thin export prospects are further aggravated by the COVID-19 virus spread and the consequent supply shock (i.e. FCA temporarily closing production due to lack of parts from China), while strong construction cycle implies yet another year with double digit growth of imports," Erste Group said in an instant comment earlier this week.

Despite the completion of TurkStream, the ongoing Moravski corridor highway construction, the railway modernisation and the housing boom suggest a strong year in terms of fixed investments, Erste Group said.

Private consumption growth seems sustainable on the back of improving labor market conditions and favourable sources of financing, the Austrian banking group said. Government is targeting a small deficit thus also expected to contribute positively to headline gross domestic product (GDP), it added.

Serbia's foreign trade deficit in 2019 increased by 6.9% to $7.100 billion (6.437 billion euro), according to data from the country's statistical office. The country's exports went up 2.0% to $19.630 billion, while imports grew by 3.3% to $26.730 billion.

Earlier this week, the country's statistical office said Serbia's gross domestic product (GDP) grew by a real 6.2% year-on-year in the fourth quarter of 2019. 

($ = 0.9001 euro)