Serbia and Italy have strengthened their economic partnership after bilateral goods trade reached a record €5 billion in 2025, reinforcing Italy’s position as one of Serbia’s leading commercial, industrial and investment partners.
- Italy Becomes Serbia’s Largest Western Balkan Trade Partner
- Business Cooperation Expands Into New Industrial Sectors
- EXPO 2027 Positioned as Investment and Business Platform
- Infrastructure and Energy Identified as Key Investment Conditions
- Serbia Seeks Higher Value Role in European Supply Chains
- EXPO 2027 Could Support New Investment Pipeline
The milestone was highlighted at a business gathering in Belgrade held at the residence of the Italian ambassador, 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 operating in Serbia.
The record trade volume reflects the growing importance of the Serbia-Italy economic corridor, which has developed into one of the key commercial links between the Western Balkans and the European Union’s industrial sector.
Italy Becomes Serbia’s Largest Western Balkan Trade Partner
According to Lazarević, Serbia is Italy’s largest foreign-trade partner in the Western Balkans, with trade involving Serbia accounting for 42% of Italy’s total goods exchange with the region.
The relationship has expanded beyond traditional import and export activities, with Italian companies increasingly involved in Serbian manufacturing, supply chains, services, infrastructure, energy transition projects and export-oriented production. For Serbia, Italy remains an important EU partner for investment, technology transfer and access to Western European industrial networks.
Italian companies have established a presence in sectors including manufacturing, textiles, automotive components, banking, insurance, agribusiness, construction materials and machinery production. The latest trade figures come as Serbia seeks to strengthen its role as a production and logistics platform connecting the EU, the Western Balkans, Turkey, the Middle East and China-related supply routes.
Business Cooperation Expands Into New Industrial Sectors
The structure of Serbia-Italy cooperation is increasingly moving beyond traditional manufacturing and consumer goods. The two countries are expanding cooperation in areas including new technologies, services and energy transition, sectors where Italian companies bring industrial expertise and where Serbia is seeking additional capital, know-how and market access. The energy transition segment is becoming increasingly important as Serbian industry faces greater pressure to improve efficiency, reduce emissions and adapt to EU-related carbon and sustainability requirements.
Italian investors continue to view Serbia as a market offering geographic proximity, established transport connections, industrial zones, competitive production conditions and access to regional supply chains. For Serbian companies, Italy represents an important EU market due to its extensive small and medium-sized enterprise network, demand for intermediate products, industrial subcontracting opportunities and long-standing commercial ties with the Balkans.
EXPO 2027 Positioned as Investment and Business Platform
The timing of stronger Serbia-Italy cooperation coincides with preparations for EXPO 2027 Belgrade, which Serbia aims to use as a platform for business diplomacy, infrastructure promotion and investment connections. Italy’s participation in the exhibition is expected to increase the event’s business dimension. The country’s experience from hosting EXPO 2015 Milan and its industrial, tourism and cultural profile are seen as important elements of its presence in Belgrade.
Italy plans to use its pavilion at EXPO 2027 Belgrade to showcase its economy, innovation capabilities, culture, music, sport and business community. The exhibition is expected to create opportunities for cooperation between Serbian and Italian companies in areas including logistics, food processing, industrial design, infrastructure, renewable energy, digital services, hospitality, construction, transport technologies and specialised manufacturing. The focus for Serbia is to convert the record trade relationship into deeper investment cooperation, including more joint ventures, technology partnerships, supplier relationships and export agreements aligned with EU standards.
Infrastructure and Energy Identified as Key Investment Conditions
The future development of Serbia-Italy economic ties will depend on several factors, including infrastructure, energy and regulatory conditions. Improved rail, road, port and intermodal transport connections would help reduce logistics costs and strengthen Serbia’s position as a regional manufacturing and distribution hub. Energy infrastructure is also becoming a central consideration for investors, with companies increasingly evaluating electricity reliability, renewable energy availability and carbon exposure before committing capital.
Regulatory stability, efficient permitting procedures and predictable enforcement are also important factors for EU-linked investors, particularly in sectors such as energy, construction, food production, logistics and financial services. The participation of Matteo Salvini, whose government responsibilities include infrastructure and transport, highlighted the importance of physical connectivity in expanding bilateral trade. Transport corridors connecting Serbia with northern Italy, Adriatic ports and Central European logistics centres are expected to remain important for future supply-chain development.
Serbia Seeks Higher Value Role in European Supply Chains
The €5 billion trade milestone comes amid wider changes in European supply chains following disruptions caused by the pandemic, energy market shocks, geopolitical tensions and global trade restructuring. Serbia has an opportunity to benefit from nearshoring trends, but the long-term opportunity depends on moving beyond low-cost production. The country aims to position itself as a more reliable, standards-aligned and energy-secure manufacturing base for European companies seeking production flexibility close to the EU market.
Italy’s industrial structure, based on manufacturing districts, medium-sized exporters, machinery producers, food processors, construction companies, design firms and technology suppliers, creates opportunities for deeper cooperation with Serbian businesses. For Serbia, the next stage involves increasing participation in higher-value activities, including engineering, components, specialised production, logistics and services rather than remaining focused primarily on lower-margin assembly operations.
EXPO 2027 Could Support New Investment Pipeline
The Serbian government views EXPO 2027 as an opportunity to create a pipeline of Serbian-Italian investment projects before, during and after the event. Potential areas of cooperation include supplier-development programmes, industrial-zone partnerships, renewable-energy arrangements, tourism and hospitality investments, logistics platforms, agri-food export projects and technology cooperation between Serbian companies and Italian SMEs.
The record trade figure provides a foundation for broader institutional cooperation, sector-specific business forums and targeted investment support. Italy’s share of 42% of Western Balkan goods trade with the region gives Serbia a significant position in bilateral commercial relations, while also increasing expectations for stronger productivity, infrastructure development, regulatory alignment and export capacity.
The next phase of the Serbia-Italy relationship will depend on whether the existing trade base can be transformed into a deeper industrial partnership built around technology, energy transition, infrastructure development and export competitiveness ahead of EXPO 2027 Belgrade.
