Serbians living abroad are sending less money home, which is a factor in the widening current account deficit. In the first half of 2025, Serbia’s deficit reached €1.99 billion, nearly double the €1.03 billion recorded in the same period of 2024. The deficit reflects that the country is spending more on imports and transfers than it earns from exports and foreign investment inflows.
Key factors contributing to the deficit include a 39% drop in foreign trade, a 33.4% increase in dividend outflows, and a 15.9% decline in net remittances compared to the first half of 2024. Data from the National Bank of Serbia (NBS) shows remittances in January–June 2025 totaled €2.343 billion, down 7.8% from €2.541 billion in the same period last year.
Most remittances come from Germany (24.7%), Switzerland (12.5%), Austria (9%), the U.S. (7.1%), and Croatia (5.9%). NBS notes the decline is partly linked to economic stagnation and lower inflation in these countries, which previously contributed to nominal growth in remittances.
Economists highlight several reasons for the drop: rising living costs in host countries reduce the amount workers can send home, and many migrants now plan to settle permanently abroad rather than sending money back. In some cases, there is no family left in Serbia to support.
Remittances remain important for the domestic economy by boosting consumption, supporting local businesses, stabilizing the exchange rate, reducing inflationary pressure, and increasing foreign currency reserves. However, experts stress that long-term stability depends more on attracting foreign investment and increasing exports than on remittances alone.
A broader regional trend shows similar patterns in neighboring countries like Croatia, Bulgaria, and Romania, where large portions of the population work abroad. Economists suggest that domestic economic growth is key to reducing dependence on remittances.
