Serbia's foreign trade deficit narrowed 27.0% y/y to EUR 3.6bn in January-October 2013, as a strong exports growth offset a mild increase in imports, statistics office data showed. The reading equalled to 10.8% of the full-year GDP projection, down from 16.3% a year ago, according to IntelliNews calculations. The ten-month import-export coverage ratio improved to 72.0% from 59.8% a year earlier.

January-October exports climbed 26.5% y/y to EUR 9.2bn, underpinned by higher motor vehicle and oil products sales abroad. Fiat Automobili Srbija (FAS) and oil firm NIS, controlled by Russia’s Gazprom Neft, were the main exporters over the period with a total of EUR 1.51bn worth of sales or close to a 17% share in total exports, data from the finance ministry showed. Higher sales of electrical equipment, rubber and plastic products, food, chemicals and electricity also supported the overall export growth. Imports went up 5.0% y/y to EUR 12.7bn in January-October, slowing from a 5.2% rise a year earlier.

Seasonally-adjusted data showed that Serbian exports shrank 4.0% m/m in October, while imports declined 1.8% m/m in euro terms, the statistics office said. Road vehicles were the biggest export item in October, while accessories of motor vehicles were the top import item.

The main export destinations for domestic producers were Italy, Germany and Bosnia. The major import partners were Italy, Germany and Russia.