Serbia recorded a substantially lower current-account deficit during the first four months of 2026, supported by trade, services and remittance developments, while direct investment inflows and foreign-exchange reserve movements changed the financing profile.
The current-account deficit amounted to €404.9 million in January-April 2026, compared with €1.34 billion in the corresponding period of 2025. The deficit was lower by €934.2 million, representing a 69.8% year-on-year decline. A narrower goods deficit, increased remittance inflows and a larger services surplus contributed to the improvement in the external balance.
Trade, Services and Remittances Support External Balance
The reduction in the goods deficit was linked to stronger export performance. Serbia also recorded higher net remittances, which reached €1.30 billion in the January-April period, an increase of 36.2% from a year earlier.
The services surplus increased by 17.8% over the same period. These developments reduced pressure on the currency and lowered external financing requirements.
Dividend Payments Increase Direct-Investment Income Outflows
The income account recorded higher outflows associated with foreign direct investment. Net direct-investment income outflows reached €1.26 billion, rising by 11.8% year on year. Net dividend outflows totalled €727.8 million, up 61.6% from the first four months of 2025. Reinvested earnings declined during the period.
Foreign-owned companies contribute capital, employment and exports through direct investment, while dividend payments and other income transfers form part of the external-account balance as these businesses generate profits.
Direct Investment Liabilities Decline From Previous-Year Level
Direct investment liabilities into Serbia stood at €600.4 million in January-April 2026, down from €1.07 billion in the same period of the previous year. In April, net foreign direct investment inflow by non-residents amounted to €216.4 million, a decline of 26.7% year on year.
Foreign-Exchange Reserves Decline During Dinar Market Operations
Foreign-exchange reserves decreased by €1.31 billion in balance-of-payments terms in the first four months of 2026. The National Bank of Serbia net sold €1.205 billion from the beginning of the year in operations aimed at maintaining relative stability of the dinar against the euro. Reserve movements reflected capital flows, corporate payments and market expectations alongside changes in the current account.
Export growth, services income and remittances supported Serbia’s external accounts during the period, while higher dividend outflows, lower direct investment inflows and reserve use remained part of the balance-of-payments position.
