Serbia’s non-financial business sector recorded stronger revenue growth in the second quarter, while the outlook for the remainder of the year remains closely linked to demand from European Union markets. Revenue increased 11% from the first quarter of 2026 and 9.7% year on year, according to preliminary data from the Statistical Office. Operating expenses rose 10.1% quarter on quarter and 7.8% annually, meaning revenue growth exceeded the increase in costs in both comparisons.
Export Exposure Keeps EU Demand Central
The stronger second-quarter figures indicate higher corporate turnover and a modest improvement in the relationship between revenue growth and operating costs. Serbia’s integration into European manufacturing supply chains leaves corporate performance closely connected to conditions in its main export markets.
Automotive suppliers, metal processors and electrical-equipment manufacturers, along with other industrial companies, depend significantly on orders from EU-based industry. A prolonged slowdown in European demand could reduce production volumes and capacity utilisation, potentially narrowing the revenue-cost advantage recorded during the second quarter.
ICT Provides Additional Revenue Growth
Service exporters, including the ICT sector, provide some diversification from manufacturing and goods exports. ICT revenue increased 8.3% year on year and 9.9% compared with the first quarter, while sector expenditure rose at a slower 5.7% quarterly rate. Domestic consumption and infrastructure activity could also contribute to corporate turnover, although these sources of demand may not fully compensate for weaker external orders affecting trade-exposed industries.
The second-quarter performance therefore provides a stronger starting point for the second half, but does not ensure continued acceleration. Higher export demand would allow companies to distribute fixed costs across larger sales volumes and support investment, while weaker external orders could limit the durability of the improvement in corporate activity.
