The external deficit fell by almost 69% in the first five months of 2026, supported by stronger manufacturing exports and a growing services surplus.
Serbia’s current-account deficit narrowed sharply in the first five months of 2026, improving the country’s external-financing position despite continuing uncertainty in European markets.
The deficit amounted to approximately €561 million between January and May, representing a year-on-year decline of 68.9%, according to National Bank of Serbia data.
The improvement was supported by both merchandise trade and services.
Serbia’s goods-trade deficit declined by 21.7% compared with the same period of 2025. At the same time, the country’s services surplus increased by 30.4%, reflecting the growing importance of information technology, professional services, transport and other export-oriented activities.
Goods exports increased by approximately 8%, while manufacturing exports rose by 8.6%.
Motor-vehicle exports were among the strongest-performing categories, increasing by approximately 50.8%. The expansion provides a significant boost to industrial output, although it also increases Serbia’s exposure to demand conditions in the European automotive sector.
The European Union accounted for 63.1% of Serbia’s goods exports during the period.
That concentration offers Serbian producers access to the country’s most important and geographically closest market, but it also means that a slowdown in EU manufacturing or consumer demand could quickly affect domestic production.
The improved external balance reduces Serbia’s immediate need for foreign financing. Net foreign direct investment was sufficient to cover the current-account deficit during the January-May period.
Foreign-exchange reserves also remained high, standing at approximately €29.6 billion. The reserves provide the National Bank of Serbia with a substantial buffer against external shocks and help support exchange-rate stability.
The figures indicate that Serbia’s external position is stronger than it was a year earlier. However, the sustainability of that improvement will depend on the composition of exports, energy-import costs and demand in the European Union.
A large increase in vehicle exports can significantly improve short-term trade performance, but a more diversified export base would provide greater protection against sector-specific downturns.
