Serbia and Italy recorded a historic expansion of economic cooperation in 2025, with bilateral goods trade reaching €5 billion, strengthening Italy’s role as one of Serbia’s leading commercial, industrial and investment partners.
- Italy Accounts for Major Share of Western Balkan Trade
- Cooperation Expands Beyond Traditional Manufacturing
- EXPO 2027 Belgrade Targets Business and Investment Role
- Investment Growth Depends on Infrastructure and Energy
- Transport Corridors Gain Importance for Trade Expansion
- Serbia Seeks Greater Role in Italian Industrial Networks
The milestone was highlighted during a business gathering in Belgrade attended by Serbia’s Minister of Internal and Foreign Trade and EXPO 2027 Belgrade commissioner, Italy’s Deputy Prime Minister and Minister of Infrastructure and Transport Matteo Salvini, and representatives of the Italian business community in Serbia.
The latest trade figures underline the growing importance of the Serbia-Italy economic corridor, which has developed into a major connection between the Western Balkans and the European Union’s industrial markets.
Italy Accounts for Major Share of Western Balkan Trade
Lazarević said that Serbia is Italy’s largest foreign-trade partner in the Western Balkans, with trade involving Serbia representing 42% of Italy’s total goods exchange with the region. The relationship has expanded beyond traditional trade flows, with Italian companies increasingly using Serbia as a base for regional supply chains, manufacturing operations, services, infrastructure activities and export-oriented production.
For Serbia, Italy represents one of the most important EU partners for investment, technology transfer and integration into Western European industrial networks. Italian companies are already active in a wide range of Serbian industries, including manufacturing, textiles, automotive components, banking, insurance, agribusiness, construction materials and machinery production.
The growth in trade comes as Serbia seeks to strengthen its role as a production and logistics hub connecting the EU, the Western Balkans, Turkey, the Middle East and China-related supply routes.
Cooperation Expands Beyond Traditional Manufacturing
The structure of Serbia-Italy economic ties is increasingly shifting from conventional import-export activity toward a broader investment partnership.
Government discussions now include new technologies, services and energy transition, sectors where Italian companies have industrial experience and where Serbia is seeking additional capital, expertise and access to international markets. Energy transition is becoming a more important element of industrial cooperation as Serbian companies face increasing requirements to improve efficiency, reduce emissions and align with EU-related carbon and sustainability standards.
Italian investors view Serbia as a market offering geographic proximity, established transport links, industrial zones, competitive labour costs and access to regional production networks. At the same time, Serbian companies benefit from Italy’s large SME sector, demand for intermediate products, industrial subcontracting opportunities and established commercial connections with Balkan markets.
EXPO 2027 Belgrade Targets Business and Investment Role
The expansion of Serbia-Italy relations coincides with preparations for EXPO 2027 Belgrade, which Serbia intends to use as a platform for business cooperation, infrastructure promotion and investment partnerships. Italy’s participation in the exhibition is expected to strengthen the event’s business focus. The country’s experience from hosting EXPO 2015 Milan, along with its industrial reputation, tourism sector and cultural influence, provides additional importance to its presence in Belgrade.
Italy’s pavilion at EXPO 2027 Belgrade is expected to present the country’s economy, innovation capacity, culture, music, sport and business community. The event could create additional cooperation opportunities between Serbian and Italian companies in sectors including logistics, food processing, industrial design, infrastructure, renewable energy, digital services, hospitality, construction, transport technologies and specialised manufacturing.
Investment Growth Depends on Infrastructure and Energy
For Serbia, the challenge is converting the record trade volume into deeper industrial integration. The next stage of cooperation is expected to depend on increased participation of Italian suppliers in Serbia, stronger involvement of Serbian companies in Italian supply chains, additional joint ventures, technology partnerships and export contracts connected with EU standards.
Infrastructure development will be one of the key factors influencing future investment decisions. Improved rail, road, port and intermodal transport connections would help reduce logistics costs and strengthen Serbia’s position as a manufacturing and distribution platform. Energy security is another important consideration for industrial investors. Companies increasingly assess electricity reliability, renewable energy availability and carbon exposure before committing capital.
Regulatory predictability, efficient permitting procedures and clear enforcement will also remain important for EU-linked investors in sectors including energy, construction, food production, logistics and financial services.
Transport Corridors Gain Importance for Trade Expansion
The participation of Matteo Salvini, whose responsibilities include infrastructure and transport, highlighted the importance of physical connections supporting bilateral commerce. Future expansion of Serbia-Italy trade will depend partly on transport links with northern Italy, Adriatic ports and Central European logistics hubs.
For Italian exporters and investors, reliable transport infrastructure is directly connected to supply-chain efficiency and industrial competitiveness. The €5 billion trade record also comes amid wider European supply-chain restructuring following disruptions caused by the pandemic, energy-market shocks, geopolitical tensions and changes in global trade patterns. Serbia could benefit from the growing nearshoring trend if it provides more than cost-competitive production and develops into a reliable, standards-aligned, energy-secure and well-connected manufacturing location close to the EU market.
Serbia Seeks Greater Role in Italian Industrial Networks
Italy’s economic structure, built around industrial districts, medium-sized exporters, machinery producers, food processors, construction companies, design firms and technology suppliers, creates opportunities for deeper industrial links with Serbia. Many Italian companies operate through regional production networks and subcontracting partnerships, creating potential for Serbian firms to move toward higher-value activities.
The focus for Serbia is increasing participation in areas such as engineering, components, services, logistics and specialised manufacturing rather than remaining concentrated in lower-value assembly operations. EXPO 2027 could support this transition by creating a pipeline of Serbian-Italian projects before, during and after the exhibition.
Potential cooperation areas include supplier-development programmes, industrial-zone partnerships, renewable-energy arrangements, tourism and hospitality investments, logistics platforms, agri-food export initiatives and technology cooperation between Serbian companies and Italian SMEs. The €5 billion trade level provides a new foundation for deeper institutional cooperation, sector-specific business forums and targeted investment support.
Maintaining Italy’s position as Serbia’s key Western Balkan trade partner will require stronger productivity, improved infrastructure, higher standards and more export-ready Serbian companies. The next stage of Serbia-Italy economic relations will depend on whether the existing trade base can develop into a broader industrial partnership focused on technology, energy transition, infrastructure, investment and export competitiveness ahead of EXPO 2027 Belgrade.
