SHORT-TERM MAcROEcONOMIc INdIcATORS

GROSS DOMESTIC PRODUCT - in the fourth quarter of 2006 increased for 2.6% in relation with the corresponding period of 2005.

In this period the increase is realized in most economic sectors, in production as well as in services sectors.

GROSS FIXED CAPITAL FORMATION-MACHINERY AND EQUIPMENT - Investments in machinery and equipment according to the commodity flow method for IV quarter 2006 has gone up by 13.4% compared to the same quarter in 2005.

At the same time, the investments in machinery and equipment for 2006, have risen by 18.0%, compared to 2005.

GENERAL GOVERNMENT CONSUMPTION BUDGET REVENUES AND EXPENDITURE AND FUNDS BUDGET - The General Government Consumption in the fourth quarter of 2006 amounted to 15167 million denars and compared to the same period of 2005 increased by 3.5%. In 2006 the total General Government consumption amounted to 57466 million denars and increased by 6.4% compared to the same period in 2005.

The Revenues of the Central Budget in the fourth quarter of 2006 increased by 6.7% compared to the same period in 2005 amounted to 19345 million denars. The increase of revenue is a result of increase of taxes and contributions by 6.4%. Non-taxes revenues in the fourth quarter of 2006 decreased by 0.7% compared to the fourth quarter of 2005.

The Budget Expenditure in the fourth quarter of 2006 increased by 7.6% compared to the same period in 2005 and amounted to 21999 million denars. In the fourth quarter of 2006 the Central Budget had a deficit amounted to 2654 million denars and at the annual level had a deficit amounted to 531 million denars.

FOREIGN TRADE EXCHANGE AND BALANCE OF PAYMENTS – Export of goods and services in the fourth quarter 2006 nominally increased by 17.8% compared with the fourth quarter 2005. Export of goods increased in nominal terms by 13.3%, and export of services increased by 38.7%.

Import of goods and services in the fourth quarter 2006 shows nominal increase by 15.5%, compared with the same period 2005. This increase is result of import of goods, nominally increased by 16.5%, and import of services increased for 9.7%.

Export of goods and services in 2006 nominally increased by 18.1%, and imports of goods and services nominally increased by 17.0% compared with the previous year.