Jan-June foreign investment: EUR 808mn

With this number Serbia will go bust quickly..Now i understand why you must keep your money market rates so high !!
With this trade deficit you must increase foreign investment ...and you have to cut imports...difficoult to do with oil at 140 but ...you are risking a bad end ...

Agree, could the reason for FDI to go down from 2006 top level be because the FDI of 2006 largely consisted of state property sell -outs ? What will happen with the FDI's when there is no more Mobtels/NIS etc to sell out to foreign buyers ?
Bust is the word, and spot on for the oil price, it is simply a question of balance between export/import that can save the day.
And yes the Dinar is expensive, exactly because the state needs every EUR it can get its hands on to fight inflation and a staggering trade deficit.
The picture gets even more gloomy when considering that most of the so-called FDI's are nothing more than setting up sales offices to sell imported goods, even more setting of the trade balance into negative territory. It seems to me the more Serbia modernizes , the more harm is done to an already sick patient, coupled with a more than narrow minded and short- sighted economical policies.
Strategy ? LoL

these economical figures are the effective heritage of Kostunica & Co. - now one can understand, why he lost not a single word about economical future of Serbia. it was only the Gazprom-deal, in which he was interested - so let's see, if he will cover an influential position there after withdrawing politics.

to luigi: except producing in countries in Europe, all European states are importing oil at more or less the same prices ... so the economical factor plays the same role for all - and it depends on the capability to BALANCE with increased exports. it is only Serbia, which thinks, the solution is to hug the bear and this problem is solved. the result will be, that the trade deficit of Serbia will only shift then, that's all. just look what happens with Belarus now - the deficit with Russia was growing rapidly - because a country must have something to offer to balance directly with goods. the same will happen with Serbia - in her case it will pay with it's own oil and dollars earned on other markets.

the real Serbian tragedy at the moment is another thing: the value of the national budget looses in 2008 more than 800 million Euro! and for to stopp this inflation, the National Bank of Serbie will have to spend "several million Euros, as it is officially reported. so the Mickey Mouse investment of Gazprom will not save Serbia.

With this number Serbia will go bust quickly..Now i understand why you must keep your money market rates so high !!
With this trade deficit you must increase foreign investment ...and you have to cut imports...difficoult to do with oil at 140 but ...you are risking a bad end ...

these economical figures are the effective heritage of Kostunica & Co. - now one can understand, why he lost not a single word about economical future of Serbia. it was only the Gazprom-deal, in which he was interested - so let's see, if he will cover an influential position there after withdrawing politics.

to luigi: except producing in countries in Europe, all European states are importing oil at more or less the same prices ... so the economical factor plays the same role for all - and it depends on the capability to BALANCE with increased exports. it is only Serbia, which thinks, the solution is to hug the bear and this problem is solved. the result will be, that the trade deficit of Serbia will only shift then, that's all. just look what happens with Belarus now - the deficit with Russia was growing rapidly - because a country must have something to offer to balance directly with goods. the same will happen with Serbia - in her case it will pay with it's own oil and dollars earned on other markets.

the real Serbian tragedy at the moment is another thing: the value of the national budget looses in 2008 more than 800 million Euro! and for to stopp this inflation, the National Bank of Serbie will have to spend "several million Euros, as it is officially reported. so the Mickey Mouse investment of Gazprom will not save Serbia.

Agree, could the reason for FDI to go down from 2006 top level be because the FDI of 2006 largely consisted of state property sell -outs ? What will happen with the FDI's when there is no more Mobtels/NIS etc to sell out to foreign buyers ?
Bust is the word, and spot on for the oil price, it is simply a question of balance between export/import that can save the day.
And yes the Dinar is expensive, exactly because the state needs every EUR it can get its hands on to fight inflation and a staggering trade deficit.
The picture gets even more gloomy when considering that most of the so-called FDI's are nothing more than setting up sales offices to sell imported goods, even more setting of the trade balance into negative territory. It seems to me the more Serbia modernizes , the more harm is done to an already sick patient, coupled with a more than narrow minded and short- sighted economical policies.
Strategy ? LoL