Serbia is entering a new phase of long-term economic planning built around a comprehensive national development strategy that aims to transform the country’s economic structure by 2035. The programme, widely referred to as the “Serbia 2035” development strategy, envisions a large-scale investment cycle of approximately €48 billion focused on infrastructure, energy systems, artificial intelligence, education and technological modernization.
The scale of the investment programme indicates that Serbia’s policymakers are attempting to reshape the country’s economic model over the next decade by combining traditional infrastructure expansion with new technology-driven sectors. The plan includes investments in roads, railways, energy infrastructure, schools, hospitals and communal services, as well as major initiatives designed to accelerate digital transformation and technological innovation.
The economic targets outlined within the programme are ambitious. Policymakers project that average monthly wages in Serbia could rise to approximately €1,320 by 2030, and potentially €1,700 by 2035, reflecting expectations of productivity growth and structural economic transformation.
Infrastructure as the backbone of economic transformation
Infrastructure development remains the central pillar of Serbia’s long-term economic strategy. Over the past decade, the country has invested heavily in highways, rail modernization and energy infrastructure in order to strengthen its position as a regional logistics hub connecting Central Europe with Southeast Europe.
The new strategy significantly expands this approach. Large-scale projects planned within the programme include further highway expansion corridors, modernization of rail networks connecting Belgrade with Budapest, Niš and regional capitals, and investment in energy transmission systems designed to support renewable electricity generation.
Infrastructure spending already plays a critical role in Serbia’s fiscal policy. The 2026 national budget includes capital expenditure of approximately 602 billion dinars, reflecting the government’s continued emphasis on transport infrastructure and energy projects as drivers of economic growth.
Large infrastructure programmes also support Serbia’s ambition to become a major logistics and industrial hub within Southeast Europe. Improved transport corridors reduce supply chain costs, encourage foreign investment and strengthen regional trade integration.
Artificial intelligence as a strategic sector
One of the most notable elements of the Serbia 2035 strategy is its emphasis on artificial intelligence and digital technology. Serbia has been one of the earliest countries in Southeast Europe to adopt a national AI development framework, launching its first AI strategy in 2019 and expanding it with a new programme for 2025–2030.
The new development plan seeks to integrate artificial intelligence into a broad range of sectors including healthcare, education, public administration and industrial production. Government institutions are also supporting the development of domestic AI capabilities through investments in supercomputing infrastructure and research programmes.
Serbia’s State Data Center in Kragujevac already hosts one of the most advanced supercomputing facilities in the region. Additional supercomputers planned for deployment during 2026 are expected to strengthen the country’s ability to develop large language models and advanced machine learning applications.
One of the most ambitious initiatives involves the development of a large AI language model for the Serbian language, a project designed to strengthen the country’s digital sovereignty and create opportunities for AI-driven services across multiple industries.
The strategy aims to integrate these technological capabilities into the broader economy, enabling Serbian companies to develop AI-enabled products and services for global markets.
Human capital and education reform
Economic transformation cannot be achieved without a strong foundation in human capital development. The Serbia 2035 strategy therefore includes significant investments in education, research and workforce training.
The government intends to expand STEM education programmes, strengthen university research capacities and encourage collaboration between academic institutions and private sector companies. These initiatives aim to address one of Serbia’s most significant long-term challenges: the need to retain highly skilled workers and reduce the outflow of talent to Western European labour markets.
Workforce training programmes will also focus on emerging industries such as information technology, robotics, renewable energy engineering and advanced manufacturing. Strengthening these skills will be essential for ensuring that the domestic workforce can support the technological transformation envisioned by the strategy.
Export competitiveness and productivity
The ultimate objective of the Serbia 2035 strategy is to increase productivity and export competitiveness. Policymakers emphasize that long-term economic growth must be driven by technological innovation, industrial upgrading and stronger integration into European supply chains.
Serbia’s export sector has already expanded significantly over the past decade. In 2025, exports of goods and services increased by approximately 7.6 percent, reflecting continued growth in manufacturing and services exports.
However, the structure of exports remains heavily concentrated in relatively low-value industrial segments such as automotive components and basic manufacturing. Increasing technological complexity within industrial production will therefore be crucial for sustaining long-term export growth.
Fiscal and macroeconomic constraints
Despite the ambitious scope of the development strategy, Serbia faces several fiscal and macroeconomic constraints that will influence the pace of implementation.
The country maintains a fiscal deficit target of roughly 3 percent of GDP, reflecting commitments made under international financial arrangements designed to maintain macroeconomic stability.
Public debt levels remain moderate relative to many emerging economies, currently below 50 percent of GDP, but the financing of large infrastructure projects will require careful fiscal management.
Ensuring that large investment programmes generate long-term economic returns will therefore be essential for maintaining fiscal sustainability.
A structural economic transformation
The Serbia 2035 strategy represents more than a traditional infrastructure development programme. It is designed as a structural transformation agenda aimed at repositioning the Serbian economy within the evolving European economic landscape.
If implemented successfully, the programme could strengthen Serbia’s role as a regional logistics hub, expand technological innovation in sectors such as artificial intelligence, and increase the country’s export competitiveness within European and global markets.
However, achieving these objectives will require consistent policy implementation, institutional stability and sustained investment over the coming decade.
The scale of the €48 billion development programme underscores the magnitude of the transformation that Serbia’s policymakers are attempting to achieve. Whether this vision becomes reality will depend on the country’s ability to translate strategic planning into concrete economic results.
