economy
Serbia's GDP growth of three percent is the best result in Europe
In the first quarter of 2026, Serbia's gross domestic product (GDP) realistically increased by about three percent year-on-year, according to a preliminary, quick estimate by the Statistical Office of the Republic of Serbia (RZS). So far, according to Eurostat data, this is the best result in Europe. Available high-frequency indicators, as assessed by economic analysts in the latest May issue of "Macroeconomic Analyses and Trends" (MAT), indicate that, from the production side, the key sources of growth are: net taxes, trade, and other services.
TL;DR
- Serbia's GDP experienced a real year-on-year increase of about three percent in Q1 2026, leading Europe.
- Key growth drivers are net taxes, trade, and other services.
- Industrial production, especially manufacturing, recovered strongly in March.
- Motor vehicle production was the largest contributor to manufacturing growth, followed by pharmaceuticals and food products.
- Foreign trade exchange grew, with exports increasing significantly and the trade deficit decreasing.
- Serbia's export coverage of import rose to 84.5% in Q1 2026, up from 79.1% last year.
- The republican budget had a deficit of 97.9 billion dinars in the first three months, which was better than planned.
- Retail trade also saw significant year-on-year expansion.
- Inflation remained within the National Bank of Serbia's target, below three percent.