Serbia’s 9-mo c/a gap widens fourfold to 3.3 bln euro

Serbia’s current account deficit widened to 3.3 billion euro ($3.5 billion) in the first nine months of the year from 767 million euro in the prior-year period, the central bank, NBS, said.

The deficit in trade of goods increased by an annual 23% to 5.6 billion euro in January-September, while the surplus in trade of services shrank by 19% to 1.8 billion euro, according to figures posted on the NBS website earlier this week.

The gap in primary income rose 24% on the year to 3.47 billion euro in the first nine month of 2024, whereas the surplus in secondary income shrank 9% to 3.96 billion euro.

In September alone, Serbia’s current account gap widened to 925 million euro from 102 million euro in September 2023.

In 2023, the country’s current account deficit narrowed to 1.81 billion euro from 4.16 billion euro in 2022, reflecting an improved energy balance and robust growth in manufacturing and services exports. Last year’s deficit shrank to 2.6% of GDP.

NBS governor Jorgovanka Tabakovic said earlier this week that the acceleration of the investment cycle linked with Serbia’s preparation for the Expo 2027 international exhibition will lead to the current account gap reaching 4.7% of GDP this year and moving around 5% of GDP in each of 2025 and 2026, which is within the boundaries of external sustainability.

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