Serbia has an upper-middle-income, emerging market economy and is the largest economy in the Western Balkans. Over the past two decades, the country has undergone substantial economic transformation, with services, manufacturing, trade, construction, agriculture, energy and information and communication technologies forming the principal components of economic activity.
According to the Statistical Office of the Republic of Serbia, Serbia’s gross domestic product (GDP) reached RSD 10.56 trillion in 2025, increasing by 2.1% in real terms compared with 2024. Economic activity strengthened during 2026: real GDP grew by 3.8% year-on-year in the second quarter of 2026, following growth of 3.5% in the first half of the year. The National Bank of Serbia projected economic growth of 3.2% for the full year 2026, while the International Monetary Fund projected growth of around 2.8%.
The Serbian economy has demonstrated resilience despite weaker international economic conditions, higher energy prices and increased geopolitical uncertainty. Domestic consumption and investment remain important drivers of activity, while infrastructure development, manufacturing investment and preparations connected with EXPO 2027 are expected to support economic growth.
The labour market has also changed considerably over the past decade. In the second quarter of 2026, Serbia had approximately 2.84 million employed people, while the unemployment rate stood at 7.2%. The average net monthly salary reached RSD 121,346 in July 2026, while the median net salary was RSD 95,036. Average net wages increased by 11.3% in nominal terms and 9.2% in real terms compared with July 2025.
Inflation, which increased substantially during the global energy and food-price shock of 2022–2023, has subsequently declined. Consumer prices in August 2026 were 2.2% higher than in August 2025, remaining within the National Bank of Serbia’s inflation tolerance band.
The official currency is the Serbian dinar (RSD), issued and managed by the National Bank of Serbia. Serbia maintains a relatively stable exchange rate against the euro, which is the principal foreign currency used in trade, investment and many domestic transactions.
The country’s financial position has strengthened considerably compared with the period following the global financial crisis. The National Bank of Serbia’s gross foreign-exchange reserves reached a record €30.8 billion at the end of August 2026, equivalent to approximately seven months of imports of goods and services. The IMF has described Serbia’s international reserves, moderate public debt and well-capitalised banking sector as important buffers against external economic risks.
Foreign direct investment (FDI) continues to play an important role in the Serbian economy, particularly in manufacturing, automotive production, mining, energy, financial services, retail and technology. Preliminary National Bank of Serbia data show that Serbia attracted €3.48 billion in FDI in 2025. Although this represented a decline from the record €5.23 billion registered in 2024, investment remained geographically and sectorally diversified. In the first quarter of 2026, manufacturing was the largest recipient of foreign direct investment.
Serbia’s economic links are particularly strong with the European Union, which remains its principal trading partner and source of investment. EU member states accounted for approximately 58% of Serbia’s total external trade in the first eight months of 2026. China has also become an increasingly important economic partner, both as a source of investment and as a market for Serbian exports.
Serbia is pursuing European Union membership and has been conducting accession negotiations since 2014. At the same time, it maintains trade arrangements with a number of other markets. In addition to its agreements with the EU-related trade framework, CEFTA and EFTA, Serbia has free-trade agreements with Türkiye, China and Egypt. The Free Trade Agreement with China entered into force in July 2024, while the agreement with Egypt entered into force in September 2025. Negotiations for an economic partnership agreement with South Korea were concluded in 2026.
Serbia’s external trade has continued to expand. During January–August 2026, total merchandise trade reached €52.5 billion, an increase of 6.4% compared with the same period of 2025. Exports increased by 8.8% to €23.7 billion, while imports increased by 4.6% to €28.8 billion. The resulting trade deficit was €5.1 billion, while the export-import ratio improved to 82.3%.
Agriculture
Agriculture remains an important part of Serbia’s economy and rural life. The country possesses extensive fertile agricultural land, particularly in the northern province of Vojvodina and the fertile valleys and plains of central Serbia. Important products include cereals, maize, wheat, sunflower, sugar beet, soybeans, fruit, vegetables, livestock and dairy products.
Serbia has traditionally been a significant exporter of agricultural and food products, particularly to European and neighbouring markets. Fruit production, including raspberries, plums, apples and other berries, is an important component of agricultural exports, while cereals and oilseeds represent major agricultural commodities.
The sector is increasingly developing towards higher-value food processing and export-oriented production. New trade agreements, particularly the free-trade agreement with China and the agreement with Egypt, have also opened additional preferential markets for Serbian agricultural and food products.
Agriculture nevertheless remains sensitive to weather conditions. In 2025, agricultural production declined slightly, reflecting unfavourable conditions in parts of the year. The recovery of agricultural production is expected to contribute to economic growth in 2026.
Industry
Manufacturing remains one of the foundations of the Serbian economy and an important source of exports and foreign investment. Major industrial activities include automotive production and components, electrical and electronic equipment, machinery, food processing, pharmaceuticals, chemicals, textiles, metals and mining.
The automotive sector has developed into one of Serbia’s most important export industries. International companies have established manufacturing facilities and supply chains in Serbia, making the country part of the wider European automotive production network. New investments have increasingly focused on higher-value manufacturing, electrical equipment and components.
Serbia also possesses significant mining resources. Copper, gold and other mineral resources are extracted in eastern Serbia, while coal remains important for domestic electricity generation. Mining and metallurgy have attracted substantial foreign investment in recent years.
Food processing is another major industrial activity, supported by Serbia’s agricultural base. International and domestic companies operate throughout the food, beverage and agricultural-processing industries.
Information and communication technologies have become an increasingly important part of the Serbian economy. The country has developed a growing technology and start-up sector, with companies active in software development, digital services, gaming, engineering and other knowledge-intensive activities. Belgrade and Novi Sad are the principal centres of Serbia’s technology sector.
Industrial production increased by 1.0% in 2025, with manufacturing growing by 1.2%. During the second quarter of 2026, manufacturing and other industrial activities continued to contribute to economic activity, although industrial production has shown month-to-month fluctuations during the year.
Energy
Energy is strategically important to Serbia’s economy. The country produces electricity from a combination of thermal and hydropower facilities and is developing additional renewable-energy capacity.
Coal and lignite remain important sources of electricity generation, while hydropower represents the principal renewable source in the country’s traditional electricity system. Elektroprivreda Srbije (EPS), the state-owned electricity company, operates the majority of Serbia’s electricity-generation capacity. Its facilities have a combined installed capacity of approximately 8.3 GW, with around 70% of electricity generated by its thermal power plants and approximately 30% by hydropower facilities.
Serbia is also expanding its use of renewable energy. Wind and solar power have become increasingly important, with new private-sector investments contributing to the diversification of electricity generation. The country’s energy policy increasingly focuses on improving energy security, modernising existing infrastructure and developing renewable sources.
Natural gas remains an important component of the Serbian energy system, and Serbia has invested in gas-storage and transmission infrastructure as well as new routes for diversifying supply.
Energy security and the transition towards lower-carbon energy sources are among the major long-term challenges facing the Serbian economy. The government is pursuing investment in renewable energy, transmission infrastructure, energy efficiency and new energy technologies while maintaining the reliability of electricity supply.
Transport
Serbia’s geographical position at the crossroads of Central and Southeast Europe gives transport and logistics a particularly important role in its economy. The country’s territory is crossed by major European road, rail and river corridors connecting Central Europe with the Balkans and the eastern Mediterranean.
Significant investment has been made in the construction and modernisation of motorways. Serbia’s principal road corridors connect Belgrade with Hungary to the north, Croatia and Bosnia and Herzegovina to the west, Bulgaria to the east, and Montenegro and North Macedonia to the south.
Railway infrastructure is also undergoing major modernisation. The Belgrade–Novi Sad–Subotica railway forms part of the wider connection towards Budapest and is an important element of Serbia’s integration into the European rail network. High-speed passenger services have significantly reduced travel times between major Serbian cities.
The Danube remains an important international waterway and provides Serbia with direct access to the European inland-waterway system. Major river ports include Belgrade, Novi Sad, Pančevo, Smederevo and Prahovo.
Air transport has expanded significantly. Belgrade Nikola Tesla Airport has become an important regional aviation hub. In the first quarter of 2026, the airport handled approximately 1.7 million passengers, an increase of 8.8% compared with the same period of 2025. The airport’s network included more than 100 routes, connecting Serbia with European and intercontinental destinations.
The development of transport infrastructure is closely linked to Serbia’s role as a regional logistics centre and to the expansion of trade and tourism.
Telecommunications and Digital Economy
Serbia has a well-developed telecommunications sector and a rapidly expanding digital economy. Mobile communications and broadband internet have become widely available, while investment in fibre-optic networks and modern mobile technologies continues.
The information and communication technology sector has developed into one of Serbia’s most dynamic areas of economic activity. Belgrade and Novi Sad host numerous technology companies, start-ups, research organisations and international development centres.
Serbia has attracted international companies in software development, engineering, research and development and digital services, while domestic technology companies increasingly operate on international markets.
The country’s universities and technical education institutions provide a significant pool of engineers, programmers and other highly skilled professionals. Digitalisation is also becoming increasingly important in public administration, finance, commerce and other sectors of the Serbian economy.
Tourism
Tourism has become an increasingly important component of Serbia’s service economy. The country offers a combination of urban tourism, cultural heritage, mountain and spa tourism, gastronomy, festivals, nature-based tourism and river tourism.
Belgrade is the country’s principal international tourism centre, followed by Novi Sad and a growing number of mountain and spa destinations. Kopaonik, Zlatibor and Tara are among the best-known mountain resorts, while Vrnjačka Banja, Sokobanja and other spa centres attract both domestic and foreign visitors.
Serbia’s cultural and historical heritage provides another important tourism resource. Medieval monasteries, historic towns, fortresses and archaeological sites complement the country’s natural attractions. The Danube and Sava rivers also offer opportunities for river cruising and recreational tourism.
Tourism recovered strongly after the COVID-19 pandemic and continued to develop during 2026. During the first seven months of 2026, Serbia recorded approximately 7.37 million tourist overnight stays, 4.4% more than in the same period of 2025. Foreign tourist overnight stays increased by 5.0%.
Belgrade’s growing role as a regional business, cultural and events centre, together with improved international air connections, has contributed to the development of city tourism. Preparations for EXPO 2027 are also expected to increase Serbia’s international visibility and tourism activity.
The Serbian Economy Today
The Serbian economy in 2026 is considerably more diversified and internationally integrated than it was at the beginning of the century. Manufacturing and agriculture remain important, but services, technology, logistics, construction, tourism and financial services have all expanded significantly.
The country’s principal economic challenges include maintaining sustainable growth, improving productivity, strengthening the rule-based business environment, developing human capital, addressing demographic pressures, modernising energy infrastructure and continuing the transition towards a more sustainable and technologically advanced economy.
At the same time, Serbia’s geographical position, expanding infrastructure, diversified industrial base, growing technology sector, access to several major markets and improving transport connections provide significant opportunities for further economic development.
