Serbia’s current-account position improved sharply in early 2026, but the strongest story is not only goods trade. MAT reports that the current-account deficit fell to €179.3mn in January–March, down 72.5% year on year. The improvement came from a smaller goods deficit, a services surplus of €778.2mn, and remittances of €913.2mn, up 31.8%.
This structure matters because it shows that Serbia’s external stability is not driven only by factories. Services and diaspora inflows are becoming essential stabilisers. Goods trade still carries structural pressure because Serbia imports machinery, energy, equipment, vehicles and industrial inputs. Services and remittances soften that pressure by bringing foreign currency into the country through less import-intensive channels.
The services surplus is especially important. Serbia’s services economy includes IT, transport, business services, professional services, logistics, travel and regional operations. These activities can generate external income without the same heavy dependence on imported components. They also support higher wages and urban productivity.
Remittances play a different role. They support household income, consumption, bank deposits and foreign-exchange stability. A 31.8% increase in remittances is a strong short-term support for the current account and domestic demand. But remittances are not a development strategy by themselves. They are stabilising inflows, not necessarily productive investment.
The current-account improvement should therefore be read carefully. A smaller deficit is positive. But Serbia must ask whether the improvement reflects stronger competitiveness or weaker investment imports. When imports slow because companies delay equipment purchases, the current account can look better while future productive capacity weakens.
The best external position would combine strong services, stable remittances, diversified goods exports and productive imports of machinery. Serbia is closer to that balance than before, but not fully there. Services and remittances are carrying more of the external adjustment. The next task is to make goods exports deeper and more domestic in value added.
