Serbian GDP Growth Confirmed at Two-Year Low

Serbia’s economy grew by 2% year-on-year in the first quarter of 2025, in line with preliminary estimates but slowing from a 3.3% increase in Q4 2024.

The GDP growth deceleration was mainly driven by a decline in gross fixed capital formation (-1% vs.

1.1%), and a slower rise in household consumption (1.7% vs.

3.8%).

However, this was partially offset by a rebound in government expenditure (0.5% vs.

-0.3%).

On the external front, exports expanded at a slower pace (7.5% vs.

8.1%), while imports accelerated (11.5% vs.

7.1%).

On a seasonally adjusted quarterly basis, the Serbian economy contracted by 0.6%, following a 1.1% growth in Q4 2024.