Government revises fiscal strategy: GDP growth to be 3% next year

The Government of Serbia has adopted a revised fiscal strategy for 2026, with forecasts for 2027 and 2028, which expects GDP growth of three percent next year, which is 1.2% less than previous expectations.

According to the strategy, the key drivers of growth remain domestic demand, real income growth, continued public and private investments, and the implementation of projects related to EXPO 2027 and the Leap into the Future program.

The main reason for the revision is the uncertain dynamics of economic activity in certain industrial sectors in conditions of pronounced global fragmentation, strengthened restrictions, and changes in energy flows, according to the document, which was published in the Official Gazette on Thursday.

On the production side, the projection assumes more moderate industrial growth (caution in manufacturing sectors), strong construction growth on the wings of the final phase of EXPO 2027 and the low base effect, as well as stable growth in services, the strategy states.

In the medium term, cumulative growth of 11.9% is projected in the period 2026–2028, with an average annual growth rate of 3.8%.

Vlada Republike Srbije

Government of Serbia

Expo 2027

GDP

public debt

budget deficit

revision

fiscal strategy of Serbia for 2026

Leap into the Future program