Foreign direct investment (FDI) inflow increased by 13% in 2024, while outflow decreased by nearly 7%, according to the monthly macroeconomic report from the Ministry of Finance. The largest share of FDI came from Serbia, Russia and Turkey. Imports rose by almost 7%, while exports dropped by nearly 9% compared to 2023, reports the RTCG Portal.
According to the data from the Ministry, the total foreign trade exchange last year amounted to 4.6 billion euros, marking a 4.4% annual growth.
“Exports of goods worth 615 million euros were down by 8.8% compared to 2023, mainly due to a 46% decrease in aluminum exports and a 44.6% decline in electricity exports,” the report states.
Imports rose by 6.8% compared to 2023, amounting to over 4 billion euros.
“There was an increase in the import of machinery and transport equipment (up 11.9%), chemical products (up 10.1%), mineral fuels and lubricants (up 8.1%), and food products (up 3.7%),” the report highlights.
Net inflow of foreign direct investments in 2024 amounted to 489.9 million euros, which is a 13.0% increase compared to 2023.
“The total FDI inflow was 889.8 million euros, representing a 3.2% increase compared to the previous year,” the report states.
Investments in companies and banks amounted to 113.9 million euros, an increase of 19.6%, while investments in real estate were 455.3 million euros, marking a 1.7% decline.
FDI inflows in the form of intercompany loans amounted to 290.8 million euros, up 9.8% from 2023.
“The total FDI outflow last year amounted to 399.8 million euros, representing a 6.7% annual decrease. The largest share of FDI came from Serbia (118.2 million), the Russian Federation (100.2 million), and Turkey (99.6 million),” the report notes.
Budget revenues up by 188 million euros
According to preliminary data, budget revenues in 2024 amounted to 2.755 billion euros or 37.8% of the projected GDP (7.279 billion), an increase of 188.6 million euros or 7.3% compared to 2023.
Excluding one-off revenues, budget revenues in 2024 were 333.8 million euros higher, or a 14% increase compared to 2023.
“Categories of budget revenues that continuously showed growth in 2024 include: corporate income tax (up 41.4%), personal income tax (up 32.7%), value-added tax (up 15.4%), and excise duties (up 14.1%), reflecting growth in economic activity and a reduction in the shadow economy,” the report states.
According to the document, budget expenditures in 2024 amounted to 2.986 billion euros or 41.0% of the projected GDP.
“Compared to 2023, expenditures increased by 430.5 million euros (16.8%), with the largest increase in expenditures for pension and disability insurance, primarily due to the increase in the minimum pension, transfers to institutions, as well as significant increases in public health institutions and higher allocations for gross salaries (due to the adoption of collective agreements that raised salaries for public sector employees in 2023),” the document states.
Compared to the plan, expenditures were 22.1 million euros (0.7%) lower, reflecting the timing of obligations during this period.
Additionally, a current expenditure surplus of 49.9 million euros was achieved in 2024.
