external deficit

External Imbalances Widen as Import Dependence Remains Structural

Serbia is facing increasing pressure on its external position, with forecasts suggesting that the current account deficit could expand to approximately 5.7% of GDP by 2026. This situation highlights a persistent structural imbalance characterized by a disparity between import demand and export capacity rather than a temporary fluctuation. The primary factors contributing to this imbalance are well understood. Serbia relies heavily on imports of energy, pharmaceuticals, consumer goods, and capital equipment. While the country has a diversified export base, it…