Foreign direct investments and their importance for Serbian economy

Movements in the sector of foreign economic relations are not satisfactory and is constantly deteriorating. This primarily refers to the current account deficit and foreign debt payments to foreign countries and foreign direct investment. Indebtedness of Serbia toward abroad and the amount of its foreign debt especially after this latest financial crisis is becoming a major problem. This is especiallv trae in conditions of world financial crisis when access to toneu and capital markets will be much harder on one side and the reduction of foreign direct investment on the other side. To this should be added reduced incomes from the sale of privatized companies as well, which makes harder situation with outside liquidity of Serbia. If we don't provide maximum attention to this problem economic and social consequences will be extremely high. It is therefore necessary to continue the already started reforms and accelerate the privatization process, continue to actively work on attracting foreign direct investment and reducing government spending.