Serbia is emerging as the most dynamic economy in the Western Balkans, with a GDP growth forecast of 4.5 percent in 2025 and record foreign direct investments, positioning itself as a magnet for global capital, according to USA Today.
Since facing near-bankruptcy in 2012, Serbia’s GDP has nearly tripled to 93 billion dollars, unemployment has dropped from 26 percent to 8.1 percent and foreign exchange reserves reached a record 33 billion dollars. Public debt stands at 44 percent of GDP, well below the Eurozone average of 89 percent. In 2024, Serbia attracted 5.9 billion dollars in foreign investments—a 14 percent increase from 2023—and captures over 60 percent of all foreign investments in the Western Balkans.
Ahead of Expo 2027 in Belgrade, the government plans 20 billion dollars in infrastructure investments, including roads, railways, hospitals, schools and agriculture. Serbia aims for 45 percent of its energy to come from renewables by 2030, with projects like a 1 GW solar park developed in partnership with the American company UGT Renewables.
The government supports startups and small and medium-sized enterprises, which make up more than 90 percent of Serbian companies, through favorable loans and capital market development. Serbia is also accelerating its EU integration, targeting full membership criteria fulfillment by 2027.
The country has transitioned from a labor-intensive to a knowledge-based economy, with the IT sector now its largest export industry, generating over 4.4 billion dollars. Belgrade hosts research centers for global tech leaders like Microsoft and AMD, fueling a rapidly growing startup ecosystem, described as the fastest in Europe.
Serbia’s strategic location and free trade agreements provide access to markets totaling 2.8 billion people, including the European Union, United States, China, Turkey, and the United Arab Emirates. Regional cooperation expands this market to 22 million people.
Among promising industries is electric vehicle production, with companies like Stellantis already operating in Serbia. Rich mineral reserves position Serbia to become a key hub for the entire electric vehicle supply chain—from mining to battery and vehicle manufacturing.
