Serbia’s GDP has surged by 26.5% over recent years, significantly outpacing the EU’s 10.2% increase. Projections for this year suggest Serbia’s GDP will grow by more than 6% in real terms, compared to a modest 1.7% growth in the EU. In the first half of this year, Serbia’s economy expanded by 4.7% in Q1 and 4.2% in Q2, while the EU’s GDP grew by only 0.8% and 0.6%, respectively.
The construction industry has played a crucial role in Serbia’s rapid economic growth, contributing between 5.5% and 6.4% of GDP annually. In 2023, the sector’s real growth was impressive, with rates of 14.2% in Q1 and 12.3% in Q2. This strong performance has helped counterbalance declines in other sectors such as trade.
Compared to the EU, Serbia’s growth is significantly higher. For instance, Poland and Ireland, the fastest-growing EU countries, only saw growth rates of 1.5% and 1.2%, respectively. In contrast, Serbia’s economic expansion has been up to seven times faster than the EU’s.
The rise in average net salaries in Serbia—from €733 in 2020 to €826 in 2024—reflects the benefits of this growth. Additionally, employment hit a record high in June 2024, with 2,315,000 people employed.
Serbia’s ambitious “Leap into the Future – Serbia 2027” program is set to invest over €17 billion, aiming to drive further economic expansion. Public investments have increased to approximately 7% of GDP, with fixed investments rising to 23-24% and expected to reach 25% by 2027.
Investment in transport infrastructure has also been substantial, exceeding 3% of GDP. Serbia now has about 1.1 kilometers of highways per 100 square kilometers, nearing the Central and Eastern European average. Ongoing projects and preparations for Expo 2027 are likely to further boost public investment.
The construction sector’s contribution to GDP growth was notable, with the sector alone adding 0.7 percentage points to Serbia’s GDP growth in Q2 2024. This is significantly more than contributions from other sectors like agriculture.
Looking ahead, both the National Bank of Serbia and Moody’s anticipate continued strong growth, with projections of up to 5% in the coming years. The increase in domestic investments and wages is expected to sustain Serbia’s economic progress and further narrow the income gap with the EU.
