Serbia exporting more despite global turbulence – Stellantis and Chinese companies pillars of growth

While the exports of some of the leading European economies are dropping, caught between the hammer and the anvil of America and China, those of Serbia grew in the first eight months of this year. The exports of Serbia in the first eight months of this year are higher by 8.6%. The imports are growing too, because we have to import energy. Although a deficit of 5.7% was recorded, the good news is that the exports grew by more than the imports.

Along with Chinese companies, this year’s exports were driven by Stellantis as well. The Kragujevac factory exported around EUR 300 million worth of electric and hybrid vehicles, mostly to Italy, but also to other countries. There is something, however, which is even more important than numbers.

– Two thirds of our goods exports are highly processed products. That indicates that we have certainly achieved good results when it comes to industrialization, because what we export brings a higher added value. So, of the nearly 22 billion worth of exports in the first eight months, around 15 billion are highly processed products – says Minister of Domestic and Foreign Trade Jagoda Lazarevic.

That has contributed to the export-import coverage ratio reaching 80%, but also Serbia having surplus with some countries with which it previously had a deficit, such as the Czech Republic and Slovakia. There is also Bulgaria, Romania and the CEFTA countries.

An export-import coverage ratio of 105% with Germany has been achieved for the first time. Exports to America are slowly growing as well. China is fourth.

Copper ores accounting for ninety percent of exports

True, 90% of the exports are copper ore, concentrate, copper cathodes and other products of Chinese companies in Serbia, but the remaining part is not negligible either.

– There are plenty of products when it comes to our exports to China, a wide range, from combined refrigerators, freezers, some electronics, there are prunes, frozen raspberries. So, there are both industrial and agricultural-food products and that range is widening – says Minister Jagoda Lazarevic.

Drop in direct foreign investments

Each euro earned from exports is much needed, especially now that, primarily due to the global crises, there is a drop in direct foreign investments by around 40%, which were crucial for covering the payment balance current account deficit.

– There is a fragmentation of the world economy now and plenty of hope is placed on diplomacy, on the Government managing to secure, through negotiations, the kinds of conditions that have been present for the economy of Serbia in those markets so far, or better relative to the competition. What’s also important now, concretely in terms of possibilities, is support in the green transformation of companies in Serbia in adopting new standards which are necessary in order for them to remain in the existing supply chains or get included in new ones – says Bojan Stanic from the Chamber of Commerce of Serbia.

New markets opening

The Free Trade Agreement with Egypt has opened the market of north Africa, and the United Arab Emirates also provide a shortcut to other countries of the Gulf. Free trade negotiations with South Korea have started, and there are also efforts to increase exports to Japan.

A continuation of the negotiations about getting an acceptable level of customs fees with America, which has an impact on that and other markets, remains another key task.

Ministarstvo unutrašnje i spoljne trgovine Republike Srbije

Privredna komora Srbije

FCA Srbija Kragujevac

Ministry of Trade

Stellantis

Chamber of Commerce of Serbia

Bojan Stanić

Jagoda Lazarević

exports

copper

automotive industry