Serbia GDP Growth Rises to 2-Year High

The Serbian GDP expanded by 3.8% from the previous year in the second quarter of 2026, picking up from the 3.2% growth rate in the earlier period and revised higher from the preliminary estimate of 3.6%. It was the sharpest expansion since the second quarter of 2024, underscoring the country's resilience to the economic shocks of higher energy prices and trade bottlenecks since the outbreak of war in the Middle East. Output soared for construction (9.1% vs -9.7% in Q1), agriculture, forestry, and fishing (12.1% vs 11.6%), financial and insurance services (5.2% vs 7.1%), and professional, scientific, and technical activities (5.8% vs 6.1%). From the previous quarter, the Serbian GDP expanded by 1.5% on a seasonally adjusted basis, the most in three years.

The Serbian economy advanced by 3.2% year-on-year in Q1 2026, up from 2.2% in the previous three-month period and above preliminary estimates of 3.0%. The latest reading also marked the strongest growth since Q4 2025. Growth accelerated in household consumption (4.8% vs 3.7% in Q4) and government spending (5.1% vs 4.2%). Meanwhile, growth slowed sharply in gross fixed capital formation (1.4% vs 8.9%), as well as net external demand, with both exports (4.6% vs 5.3%) and imports (3.6% vs 7.6%) easing. On the production side, wholesale and retail trade (4.9% vs 0.6%) recorded the strongest expansion, followed by agriculture, forestry and fishing (7.1% vs -0.3%), financial and insurance activities (6.9% vs 2.0%), and professional, scientific and technical activities (6.1% vs 5.3%). On a seasonally adjusted quarterly basis, the economy grew by 0.2% in Q1 2026, slowing from 1.0% in the preceding quarter.

The Serbian economy advanced by 2.2% year-on-year in the final quarter of 2025, confirming preliminary estimates and accelerating from a 2% growth in the previous three-month period. The latest figure also marked the strongest growth for the year, driven by faster increases in household expenditure (3.7% vs 3.5% in Q3) and government spending (4.2% vs 3.8%). Additionally, gross fixed capital formation rebounded sharply (8.9% vs -2.2%). Meanwhile, net external demand contributed negatively to the GDP, with imports (7.6% vs 4.8%) rising more than exports (5.3% vs 4.2%). On the production side, the construction sector (10.6% vs -12.2%) posted the most notable output increase, followed by professional, scientific and technical activities (5.3% vs 4.2%), and arts, entertainment and recreation (5.2% vs 5.4%). On a seasonally adjusted quarterly basis, the economy expanded by 1% in the fourth quarter, following a 0.7% growth in the preceding period.