External sector deficit:
- key challenge of economic policy -

1. Status of external sector deficit. Foreign trade deficit and unemployment have represented the greatest macroeconomic imbalance in the industry of Serbia for a long time. In the transit period of 2001-2006, Serbia has had high shares of foreign trade deficit in gross domestic product (over 20% of GDP) owing to an accelerated growth of imports against exports. The greatest share of foreign trade deficit in the GDP was 29.5% in 2004, which was a one-off increase, due to the introduction of Value Added Tax as of January 1, 2005.

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Bulletin Public Finances, August 2007