Serbia’s current-account data show the deficit fell by 30% year on year to about 3.1% of GDP by June 2026, as exports of goods and services grew faster than imports. The improvement in the first half partially reversed the deterioration recorded a year earlier.
In 2025, the deficit widened to 4.9% of GDP from roughly 4.7% in 2024. The change mainly reflected a smaller services surplus and a larger primary-income deficit. Stronger export performance contributed to the subsequent improvement.
Net foreign direct investment has fallen sharply from previous record levels, making the financing mix less comfortable. Serbia still holds substantial foreign-exchange reserves, but structurally smaller FDI inflows would leave the external account more sensitive to portfolio flows, borrowing and changes in import demand.
Export growth can narrow the current-account gap without a sharp compression in domestic demand. The challenge is to sustain it through higher-value exports rather than rely on cyclical factors. Improving industrial productivity and services exports would make the external balance less dependent on continued large inflows of foreign investment.
