Serbia’s non-financial corporate sector began 2026 with solid revenue growth, according to new first-quarter business activity data. The figures show that corporate revenues expanded faster than operating costs, supporting profitability despite pressures from wages, energy costs and financing expenses. The Statistical Office of the Republic of Serbia reported preliminary results for the first quarter of 2026.
Operating income rises faster than costs
Preliminary data indicate that operating income across the non-financial business economy increased by 6.4% year-on-year in the first quarter of 2026. Operating costs rose by 5.4%, a smaller increase than operating income. The gap suggests many companies preserved margins amid inflationary pressures and a more challenging European business environment.
GDP grew by 3.2% in the first quarter, while corporate turnover growth was stronger, reflecting continued support from consumption, service-sector demand and digitalization trends. The release also points to a widening divergence between traditional sectors and higher-value technology-oriented activities.
ICT becomes fastest-growing major segment
The Information and Communication Technology (ICT) sector recorded operating revenues up by 11.4% compared with the same period of 2025. This rate made ICT the fastest-growing major segment within Serbia’s business economy. The data also highlight ICT’s role as a dynamic source of value creation and export growth.
The report links ICT expansion to structural developments including international technology investment and the growth of domestic software companies, outsourcing providers, gaming studios and digital service exporters in European and global markets. It describes the sector as increasingly resembling a strategic export industry rather than a niche service segment.
At the same time, ICT growth is accompanied by higher spending requirements, with operating costs rising by 12.5%. The increase slightly outpaced revenue growth during the quarter. Rising salaries for highly skilled workers, ongoing investment in technology infrastructure and competition for engineering talent are cited as likely factors.
Within ICT, computer and peripheral equipment manufacturing showed the strongest activity, with revenues up by 13.1% year-on-year. The segment remains smaller than software and digital services but indicates broader inclusion of hardware and advanced manufacturing components alongside IT services.
Services outperform traditional sectors
The service economy continued to expand faster than traditional sectors, with service-sector operating revenues up by 6.6%. This was slightly above the national average for the first quarter. The report associates the performance with strong consumer spending, expanding logistics activity and continued growth in professional and business services.
Accommodation and food services posted an annual increase in operating revenues of 24.0%. Operating costs in hospitality rose by 27.7%, reflecting labour shortages, wage inflation and food-price pressures that challenge profitability even as revenues grow.
Trade recorded operating revenues up by 5.2% year-on-year, while operating costs increased by 5.0%. Transportation and storage delivered revenue growth of 3.6%, with costs rising by 5.7%. The release attributes part of the tighter income-expense spread to labour shortages, transportation costs and evolving regional trade flows.
The report also says transportation and storage remains supported by Serbia’s role as a logistics and manufacturing hub connecting Central Europe, Southeast Europe and Turkey.
Industry, construction and agriculture show varied cost dynamics
Industry and construction generated revenue growth of 6.4%, with operating costs increasing by 3.7%. The figures point to a relatively favorable earnings environment compared with several service sectors during the quarter.
Agriculture, forestry and fishing delivered more modest results, with operating revenues rising by 3.3% while costs increased by 3.8%. Although agricultural output recovered at GDP level, business performance remained constrained by input costs and market volatility affecting commodity producers.
Quarterly comparison shows seasonal declines
The release highlights differences between annual and quarterly comparisons relative to the fourth quarter of 2025. Operating revenues across the economy were lower on a quarter-on-quarter basis due to normal seasonal patterns.
Total operating income stood at 86.7% of fourth-quarter levels, while operating costs were at 85.4% of the previous quarter. Similar seasonal declines were reported across most sectors during this comparison.
The first-quarter data also show that technology-related activities—alongside professional services, trade, logistics and tourism—continue to account for a growing share of corporate revenues within Serbia’s economy.
The report further notes that revenue growth remains healthy across most sectors while operating costs rise rapidly in labour-intensive industries. It states that 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.
