trade deficits

Persistent trade deficits are increasing Serbia’s exposure to external financing cycles and currency pressures.

Serbia's economic model has shown resilience over the last decade, bolstered by industrial growth, consistent foreign investment, and rising exports. However, a significant concern is the ongoing large external trade deficits, which necessitate continuous foreign capital inflows for financing. This structural issue has not yet resulted in instability; Serbia has managed to maintain macroeconomic balance with a stable currency and manageable inflation rates. The sustainability of this balance is increasingly dependent on external factors, particularly the cost and availability of…