MAT: Serbia’s real GDP grew by approximately 3.6% year-on-year over eight months

Serbia's real gross domestic product (GDP) grew by approximately 3.6% year-on-year in the first eight months of 2026, driven primarily by growth in “other” services, net taxes, and trade, placing it among Europe’s fastest-growing economies, according to the latest issue of the monthly journal Macroeconomic Analyses and Trends.

As said, in August 2026, industrial production showed slight stagnation. Overall, it was 0.5% lower than the previous year, although growth was recorded in the mining and energy sectors.

Cumulatively, from January to August, industrial production saw marginal growth of 0.1%, hampered by strong external pressures (sanctions, EU protectionism, the Eurozone crisis) that are restraining stronger momentum in domestic production.

Foreign trade continues to expand - in the first eight months of 2026, merchandise exports rose by 8.8%, and the export-to-import coverage ratio improved to 82.3%, up from 79.1% during the same period last year.

Export growth is driven almost entirely by capital and intermediate goods, with motor vehicle manufacturing making the single largest contribution.

According to Eurostat data, Serbia also ranks among the European leaders in terms of year-on-year growth in real retail trade turnover.

In July 2026, net wages grew by 9.2% in real terms compared to the same period of the previous year. The average net wage in June exceeded the value of the average consumer basket by 8.6%.

Inflation rose in August 2026 on both a monthly and a year-on-year basis. Monthly inflation rates of -0.2% and 0.5% were recorded in July and August 2026, respectively, alongside year-on-year inflation rates of 1.9% and 2.2%.

At the same time, year-on-year inflation in the EU, as measured by the Consumer Price Index, stood at 3.2%. Only seven of the 27 EU member states recorded lower year-on-year inflation than Serbia in August.

Of the 27 European Union member states, seven countries (Sweden, Estonia, the Czech Republic, Hungary, Malta, Denmark, and Finland) had lower year-on-year inflation than Serbia in August 2026.

The highest inflation rates in August were recorded in Romania (6.3%), Lithuania (5.6%), Cyprus (5.2%), and Bulgaria (5%).

Ekonomski Institut a.d. Beograd

Macroeconomic Analyses and Trends

MAT

gross domestic product

GDP