Money sent home by Serbian workers abroad substantially exceeded net foreign direct investment in the first half of 2026, highlighting the growing importance of the diaspora in supporting household spending and the country’s external balance.
Net workers’ remittances increased 24.7% year on year to €2.02 billion, according to data presented in the September edition of the Macroeconomic Analyses and Trends bulletin.
Net foreign direct investment, by comparison, amounted to €840.2 million, leaving remittance inflows more than twice as large.
Remittances helped Serbia’s current-account deficit narrow 30.5% to €1.39 billion. The improvement was also supported by a smaller goods deficit and a larger surplus in international services.
The inflows provide households with money for consumption, housing, education and debt repayments. They can also reduce poverty and help stabilise local economies in parts of Serbia with high levels of outward migration.
Their economic effect differs from direct investment, however. Remittances predominantly strengthen household income and consumption, while FDI is more likely to finance factories, equipment, technology and export capacity.
Gross inward FDI fell 29% to €1.22 billion. Net FDI remained slightly above the previous year’s level because investment by Serbian residents abroad also decreased.
The comparison therefore does not mean foreign investors withdrew from Serbia. It shows that new gross inflows slowed while transfers from workers abroad accelerated.
Serbia’s dependence on remittances also carries structural risks. Large inflows can support imports and property prices without necessarily increasing productivity. They also reflect the scale of labour migration and the loss of working-age residents.
For the current account, diaspora money is a reliable stabiliser. For long-term growth, it is not a substitute for productive investment.
Serbia is receiving more financial support from citizens who left than net capital from foreign investors entering the country. That balance says as much about migration as it does about investment.
