economy
February 11, 2026
Why are foreign companies reducing investments in Serbia?
According to the trend in the first three quarters, foreign direct investments in Serbia were almost halved last year, as gross inflows for the first nine months amounted to about 2.5 billion euros, while 3.8 billion was achieved in the same period last year, and a record 5.2 billion for the whole of 2024.
TL;DR
- Foreign direct investment in Serbia nearly halved in the first nine months of last year compared to the same period previously.
- Remittances from the diaspora, while increased, are largely directed towards consumption rather than investment.
- Foreign companies cite a range of reasons for the investment slowdown, including political uncertainty, corruption, macroeconomic instability, and labor shortages.
- A survey of 200 companies found that 39% perceive the investment climate as "bad" or "very bad," while only 17% consider it "good."
- The retail sector, particularly affected by margin restrictions, shows significant dissatisfaction with the investment climate.
- Companies are increasingly viewing the current investment climate as worse than in previous years.
- Political uncertainty and corruption have emerged as top barriers to investment in Serbia.
- A significant portion of foreign companies plan to maintain their current investment levels, with a smaller percentage intending to reduce or increase investments in the next three years.
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