Serbia’s current-account deficit narrowed 55.2 percent in the first two months of the year as the Balkan nation’s exports jumped and remittances doubled.
The gap of 289.1 million euros ($376.5 million) narrowed from 645.5 million euros a year earlier, according to a report published by the Belgrade-based Narodna Banka Srbije today. The trade deficit fell 26.5 percent after exports grew 32.1 percent. Imports rose 4.3 percent from a year earlier. Remittances jumped 94.8 percent on year to 170.5 million euros.
Balance of payments figures also show portfolio investment was bolstered by Serbia’s sale of a $1.5 billion Eurobond in February and 91 million euros in two-month foreign direct investment. At the same time, Serbian banks and companies stepped up repayment of trade and financial loans, which totaled 291.6 million euros in two months through February.
The central bank sees this year’s gap shrinking to below 8 percent of GDP in 2013 from 10.7 percent or 3.15 billion euros in 2012.
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