Household spending remained a significant contributor to economic activity in Serbia during the first four months of 2026, supported by rising retail sales and continued growth in real wages, according to MAT data.
Real retail turnover in food, beverages and tobacco increased by 6.7% in January–April, while sales of non-food products rose 8.4%. Retail trade in motor fuels expanded by 9.7% over the same period. The average net salary reached RSD 121,650 in March 2026, representing nominal growth of 12.6% and real growth of 9.5%.
Household Consumption Supports Economic Activity
Higher real incomes have supported household consumption, contributing to retail turnover, value-added tax revenues, services activity, imports, logistics, banking operations and small-business demand.
The strength of domestic consumption has supported GDP growth during a period in which industrial output and investment activity have been uneven. For the public sector, stronger consumer spending supports tax collection. For banks, household income growth contributes to consumer credit quality and repayment capacity.
Consumer Demand and External Exposure
Retail expansion supports domestic economic activity but does not directly increase productivity. Higher consumer spending can also raise demand for imported goods and increase exposure to external trade conditions.
Growth in motor fuel sales contributes to tax revenue and reflects higher mobility, while also increasing sensitivity to global oil-price movements. Increased turnover in non-food products and fuel outpaced growth in food retail sales during the January–April period.
The faster increase in non-food sales indicates stronger discretionary consumer spending, while fuel turnover reflects both transport activity and energy-related demand.
Wage Growth Raises Household Income and Labour Costs
Real wage growth of 9.5% increased household purchasing power and supported consumers’ capacity to absorb inflation. The rise in average net earnings also increased labour costs for employers.
For exporters operating in European Union supply chains, the effect of higher wages depends on corresponding productivity growth. Without productivity gains, rising labour costs can reduce cost competitiveness.
Consumption Remains a Key Growth Component
Domestic demand continued to provide support for Serbia’s economy in early 2026, with retail sales and wages both recording strong increases. The MAT figures show that household consumption has remained resilient, while private investment, manufacturing activity, energy efficiency and export performance continue to determine the wider composition of economic growth.
