But, euro area recession and dented economic growth of Serbia’s other foreign trade partners will reflect negatively on demand for Serbian products and the inflow of FDI in the course of this year. Despite this, past and current investments in export branches of industry, primarily in the automotive industry, will lead to increased production and exports from the second half of the current year.
Past weakening of the dinar will also give impetus to exports growth. In view of high unemployment and modest economic growth, final consumption is expected to contract this year as well. Coupled with a fall in investment demand and past weakening of the dinar, this will probably result in lower imports in 2012.