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Serbian 2011 Current-Account Gap Widens 43% to 3 Billion Euros

Serbia’s 2011 current-account deficit widened 42.5 percent from the previous year as Serbs abroad sent less money back home, the National Bank of Serbia said.

The shortfall totaled 2.96 billion euros ($3.96 billion), compared with 2.08 billion euros in 2010, the Belgrade-based central bank said today in a statement on its website. Remittances, one of the main sources of capital inflows, dropped to 2.21 billion euros from 2.42 billion euros, it said.

Portfolio investment remained at 1.62 billion euros at the end of December, almost unchanged from November. Portfolio investment stood at 38.8 million euros in 2010.

The data showed 1.5 billion euros in foreign capital inflows invested in government debt.

Serbia attracted 1.83 million euros in foreign direct investment last year, compared with 860 million euros in 2010, the bank said.

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