Serbia's net FDI slightly falls to 4.2 bln euro in 2023

Net FDI fully covered the current account deficit for a ninth year in a row, the central bank said in a statement last week.

In 2023, Serbia's total FDI inflow rose to 4.5 billion euro, equivalent to 6.1% of the gross domestic product (GDP) and beating the previous record-high level of 4.4 billion euro achieved in 2022.

Almost four-fifths of FDIs took the form of equity and reinvested earnings, the central bank noted, adding that the bulk of investments were in manufacturing, construction, mining, and trade.

Portfolio investments generated a net inflow of 917.8 million euro in 2023, thanks to the successful Eurobond worth $1.75 billion (1.62 billion euro) sold in January, it added.

In the fourth quarter of 2023 alone, total FDI inflow stood at 1.3 billion euro. Capital outflow under portfolio investments amounted 172.6 million euro in the October-December period as residents raised their investments in securities in foreign markets, while non-residents reduced their investments in domestic securities, the central bank said.

Serbia's current account deficit narrowed to 1.81 billion euro last year, from 4.16 billion euro in 2022, central bank figures showed last week.

($ = 0.928 euro)