Serbia’s non-financial business economy entered 2026 with continued momentum as corporate revenues outpaced expense growth during the first quarter, providing further evidence that private-sector activity remains resilient despite a more challenging European economic environment. According to the latest data from the Republic Statistical Office (RZS), business revenues across Serbia’s non-financial economy increased by 6.4% year-on-year during the first three months of 2026, while business expenses rose by a slower 5.4%.
The figures suggest that many Serbian companies were able to preserve or modestly improve operating margins despite ongoing inflationary pressures, wage growth and higher financing costs. Revenue growth exceeding cost growth is particularly important at a time when many European economies are experiencing weaker industrial activity and softer consumer demand.
The strongest performance came from the information and communications technology sector, which continues to establish itself as one of Serbia’s most dynamic growth engines. Revenues in the ICT sector increased by 11.4% compared with the first quarter of 2025, significantly outperforming the wider economy. However, the sector also recorded a 12.5% increase in expenses, indicating that companies continue to invest heavily in talent acquisition, software development, infrastructure and international market expansion.
The data reinforces a broader trend visible across Serbia’s economy over the past several years. While traditional manufacturing sectors such as automotive production, food processing and metal industries remain major contributors to exports and employment, the digital economy is steadily increasing its share of value creation. Serbian ICT exports have become one of the country’s fastest-growing export categories, supported by foreign direct investment, a skilled engineering workforce and growing integration with European technology supply chains.
For investors and lenders, the first-quarter figures offer an encouraging signal. Corporate revenue growth above cost growth generally translates into stronger cash generation, improved credit metrics and greater capacity for capital expenditure. This is particularly relevant as Serbian companies face a period of significant investment requirements linked to energy transition projects, industrial modernization, digital transformation and compliance with emerging European regulatory frameworks such as the Carbon Border Adjustment Mechanism (CBAM).
The results also align with broader macroeconomic indicators released recently. Serbia recorded real GDP growth of approximately 3.2%–3.5% during the opening months of 2026, supported by domestic consumption, infrastructure investment and selected export-oriented sectors. The latest corporate revenue statistics suggest that growth remains relatively broad-based rather than concentrated in only a few industries.
Looking ahead, the sustainability of this trend will depend on several factors. Demand conditions in the European Union remain critical given the bloc’s role as Serbia’s largest export market. Energy costs, financing conditions and industrial activity in Germany will continue to influence Serbian corporate performance throughout the remainder of the year. At the same time, ongoing investments in digital services, automotive production, renewable energy and logistics infrastructure provide support for continued expansion.
The first-quarter data therefore points to an economy that is still growing, albeit at a more measured pace than during the post-pandemic recovery years. With revenues expanding faster than costs and the ICT sector maintaining double-digit growth, Serbian companies appear to have entered 2026 on a relatively solid footing despite increasingly complex international market conditions.
