1. Macroeconomic Snapshot – Serbia DPA / VBT Visit 30th May Hotel Moskva, Belgrade

2. 2 Key observations GDP growth of Serbia is related to trends in the EU After strong growth in period 2000-2005, in last six years average growth was 2.1% Inflation is like a family member Economy functions with inflationary expectations higher than in the EU, average for last six years 6.7% The EU is a key foreign trade partner of Serbia Trade deficit is a traditional problem Unemployment is high Low labour costs Budget deficit linked with IMF stand-by agreement

3. GDP and growth 3 Source: National Bank of Serbia and the IMF

4. GDP (in €, mln) 4 Source: National Bank of Serbia and Ministry of Finance

5. Inflation (%) 5 Source: National Bank of Serbia and the IMF

6. Foreign trade 6 Source: National Bank of Serbia and Statistical Office

7. Trade deficit and GDP 7 Source: National Bank of Serbia and Statistical Office

8. Unemployment 8 Source: Statistical Office

9. Labour costs in € 9 Source: National Bank of Serbia and Statistical Office

10. Public debt 10 Source: National Bank of Serbia

11. 11 What could it mean for you? Recovery of the local market slow Inflation less of a risk than before (Gradual) depreciation of local currency Costs of labour to remain competitive Calculating FX risks when selling to Serbia Fiscal policy reforms necessary Reduction of subsidies