Serbia’s non-financial corporate sector entered 2026 with solid revenue growth, highlighting the continued resilience of domestic demand and the increasing importance of technology-driven industries within the national economy. New first-quarter business activity data show that corporate revenues expanded faster than operating costs, creating a generally favorable environment for profitability despite ongoing pressures from wages, energy costs and financing expenses.
According to preliminary data from the Statistical Office of the Republic of Serbia, operating income across the non-financial business economy increased by 6.4% year-on-year during the first quarter of 2026. Operating costs rose by a lower 5.4%, suggesting that many companies were able to preserve margins despite inflationary pressures and a more challenging European business environment.
The figures provide an important insight into the composition of Serbia’s economic growth. While GDP expanded by 3.2% in the first quarter, corporate turnover growth was considerably stronger, indicating that businesses continued to benefit from rising consumption, service-sector demand and digitalization trends. The data also reveal a widening divergence between traditional sectors and higher-value technology-oriented activities.
The standout performer was the Information and Communication Technology (ICT) sector, where operating revenues increased by 11.4% compared with the same period of 2025. This made ICT the fastest-growing major segment of Serbia’s business economy and reinforced its role as one of the country’s most dynamic sources of value creation and export growth.
The sector’s rapid expansion reflects several long-term structural developments. Serbia has continued to attract international technology investment while domestic software companies, outsourcing providers, gaming studios and digital service exporters have expanded their presence in European and global markets. The result is a sector that increasingly resembles a strategic export industry rather than a niche service segment.
Yet the data also show that growth in ICT is coming with higher expenditure requirements. Operating costs within the sector increased by 12.5%, slightly outpacing revenue growth. Rising salaries for highly skilled workers, continued investment in technology infrastructure and competition for engineering talent are likely contributing factors.
Within ICT itself, the strongest activity was recorded in computer and peripheral equipment manufacturing, where revenues increased by 13.1% year-on-year. This segment remains relatively small compared with software and digital services but demonstrates that Serbia’s technology ecosystem increasingly includes hardware and advanced manufacturing components alongside traditional IT services.
The broader service economy also continued to outperform traditional sectors. Service-sector operating revenues increased by 6.6%, slightly above the national average. This performance reflects strong consumer spending, expanding logistics activity and continued growth in professional and business services.
Among service activities, accommodation and food services produced the most impressive annual increase, with operating revenues rising by 24.0%. The result points to another strong tourism season and continued recovery in hospitality demand. Serbia’s growing position as a regional conference, business travel and leisure destination appears to be translating directly into corporate revenue growth across hotels, restaurants and related service providers.
The hospitality sector also experienced the sharpest increase in operating costs, which rose by 27.7%. Labour shortages, wage inflation and food-price pressures continue to challenge profitability across the industry even as revenues expand rapidly.
Trade, traditionally the largest component of Serbia’s service economy, recorded a more moderate but still solid revenue increase of 5.2% year-on-year. Operating costs rose by 5.0%, suggesting relatively stable operating conditions for retailers and wholesalers despite ongoing competitive pressures.
Transportation and storage activities delivered revenue growth of 3.6%, while costs increased by 5.7%. The narrower spread between income and expenses reflects continued challenges facing logistics operators, including labour shortages, transportation costs and evolving regional trade flows. Nevertheless, the sector remains supported by Serbia’s growing role as a logistics and manufacturing hub connecting Central Europe, Southeast Europe and Turkey.
Industry and construction, which together account for a significant share of Serbia’s business economy, generated revenue growth of 6.4%. However, operating costs increased by 3.7%, creating a relatively favorable earnings environment compared with several service sectors. The figures suggest that industrial companies may have benefited from improved pricing power and cost management during the quarter.
Agriculture, forestry and fishing delivered more modest results, with operating revenues increasing by 3.3% and costs by 3.8%. Although agricultural output recovered at the GDP level, business performance remained constrained by input costs and ongoing market volatility affecting commodity producers.
One of the more notable aspects of the release is the contrast between annual and quarterly comparisons. Relative to the fourth quarter of 2025, operating revenues across the economy were lower, reflecting normal seasonal patterns. Total operating income stood at 86.7% of fourth-quarter levels, while operating costs were 85.4% of the previous quarter. Similar seasonal declines were visible across most sectors.
From an investor perspective, the first-quarter data reinforce the ongoing transformation of Serbia’s economic structure. Technology, professional services, trade, logistics and tourism continue to capture a growing share of corporate revenues, while the ICT sector increasingly functions as a strategic pillar of growth comparable to manufacturing and export-oriented industry.
The numbers also underline an important shift in corporate profitability dynamics. Revenue growth remains healthy across most sectors, but operating costs are rising rapidly in labour-intensive industries. Companies with stronger productivity growth, higher digitalization levels and greater exposure to international markets appear better positioned to defend margins than businesses dependent on domestic labour availability alone.
For Serbia’s broader economic outlook, the message is increasingly clear. The country’s next phase of growth is being driven less by traditional low-cost production and more by knowledge-intensive services, digital industries, logistics and consumer-facing sectors. The 11.4% expansion of ICT revenues, combined with strong growth in hospitality and service activities, suggests that Serbia’s corporate economy is gradually moving toward a more technology- and service-oriented model, one that may prove more resilient as European industrial growth remains subdued.
