Branimir Jovanović, a researcher at the Vienna Institute for International Economic Studies, projects Serbia’s GDP growth in 2025 to be between 2.0 and 2.5 percent, lower than the 2.75 percent forecast by the National Bank of Serbia.
He cited a slowdown in investments as the main reason for weaker growth. Gross investments fell by around 2.5 percent in the first half of the year, largely due to a 40 percent drop in foreign direct investment—from €2.6 billion last year to €1.5 billion—driven by global uncertainties, including geopolitical tensions and trade issues.
Jovanović noted that domestic political protests have minimal impact on foreign investment, which is declining across the region. He emphasized that Serbia’s reliance on foreign investment in recent years highlights the need to shift the economic model toward stronger support for domestic firms.
External factors, particularly weak growth in key EU economies like Germany and Italy, also continue to affect Serbia’s economic performance.
