Serbia textiles & clothing report Q4 2009

Serbia is a small textile and clothing producer, still struggling to overcome the upheavals of the 1990s, which included the break-up of Yugoslavia, the Balkans conflicts, privatisations and the reorientation of the economy. BMI ranks it as number 70 in the world in terms of textile and clothing manufacturing value added. In nominal terms, we estimate that to have been worth US$4.2bn in 2008.

The natural market for Serbian textile and clothing exports is Europe, but the Continent is now in the throes of a recession, meaning that the outlook for the Serbian industry is fairly bleak over 2009 and 2010. Overall Serbian textile and clothing value added will fall by 14.8% in 2009, and again by 4.5% in 2010, reflecting very difficult international economic conditions. We see a moderate recovery setting in from 2011, with growth of 3.1%. The industry's trade performance will also reflect the especially difficult international economic situation. There will be a textile and clothing trade deficit of US$269mn in 2009.