World Bank: Serbia’s economic growth this year at 2.8%

Serbia’s economy is expected to grow by 2.8% in 2025, according to the latest World Bank estimate. After a strong performance in 2024, the economy has lost momentum due to lower private investment and net foreign direct investment inflows amid global uncertainty, the World Bank said in a statement.

Growth slowed to 2% in the first half of 2025 due to an estimated sharp decline in construction activity and weaker agricultural performance, impacted by negative climate shocks.

– Serbia has achieved good macroeconomic results, but its economic growth needs to accelerate. Escaping the “middle-income trap” requires a shift to an innovation-driven economy that boosts productivity and enables domestic firms to integrate into value chains in the European Union (and globally) – said Nicola Pontara, World Bank Country Manager for Serbia.

For Serbia, this would mean, among other things, attracting “greenfield” foreign direct investment and investment in sectors with higher added value, greater investment in research and development and the improvement of human capital throughout the life cycle to strengthen capacities and skills. The World Bank has forecast that Serbia will achieve economic growth of about three to four percent per year in the next few years. Among the downside risks are potential budgetary support for state-owned enterprises facing difficulties in their operations, weaker external demand for Serbian exports in the context of global uncertainty in the field of trade policy, as well as the impact of extreme weather events on agriculture and infrastructure.

Svetska Banka-WB Beograd

World Bank

Nicola Pontara

economic growth of Serbia

GDP of Serbia