Serbia’s current-account deficit narrowed sharply in the first half of 2026 as exports, services and remittances improved, but lower foreign investment and rising dividend payments exposed vulnerabilities beneath the stronger headline balance.
The current-account deficit fell 30.5% to €1.39 billion, according to data presented in the September edition of the Macroeconomic Analyses and Trends bulletin.
The goods deficit narrowed by 13.5% to €2.76 billion, while the services surplus rose 13.4% to €1.34 billion.
Exports of telecommunications, computer and information services, Serbia’s largest service-export category, increased 4.9% to €2.33 billion.
Net workers’ remittances jumped 24.7% to €2.02 billion, providing another important source of foreign currency and household income.
The financial account was less reassuring. Gross inward foreign direct investment fell 29% to €1.22 billion. Net FDI remained broadly stable at €840.2 million, partly because Serbian investment abroad also declined.
At the same time, net dividend outflows increased 58.1% to €1.51 billion. Total net income outflows from direct investment rose 14.5% to €2.31 billion.
The divergence reflects Serbia’s mature stock of foreign-owned businesses. Earlier investment continues to support production and exports, but it also generates growing profit distributions to overseas owners.
Portfolio inflows reached €3.82 billion, largely because the state and companies issued debt on international markets. Serbia placed a three-tranche eurobond of around €3 billion, while Telekom Srbija raised approximately €1.95 billion through international bonds.
These transactions strengthened financing and helped lift foreign-exchange reserves by €674.5 million, but they also changed the composition of external funding towards debt. The National Bank of Serbia sold a net €755 million on the domestic foreign-exchange market during the period.
Serbia’s external balance has improved, but the quality of its financing deserves closer scrutiny. Exports and services are closing the gap; new investment is no longer doing as much of the work.
