Serbia is poised to embark on a transformative economic journey through its newly unveiled national development strategy, aiming for significant structural changes by 2035. The initiative, known as the “Serbia 2035” development strategy, outlines an extensive investment plan totaling approximately €48 billion, focusing on vital areas such as infrastructure, energy systems, artificial intelligence (AI), education, and technological advancement.
This ambitious investment program reflects the government’s intention to overhaul the country’s economic framework over the next decade. The strategy combines traditional infrastructure development with a shift towards technology-driven sectors. Key investments will target roads, railways, energy infrastructure, educational institutions, healthcare facilities, and communal services. Additionally, substantial efforts will be made to foster digital transformation and innovation across various sectors.
The economic projections within this plan are notably optimistic. Policymakers anticipate that average monthly salaries in Serbia could reach around €1,320 by 2030 and potentially rise to €1,700 by 2035. These figures are tied to expected productivity increases and a comprehensive transformation of the economy.
Infrastructure development is highlighted as a crucial element of Serbia’s long-term economic vision. Over the past decade, substantial investments have been made in highways, rail modernization, and energy infrastructure to enhance the country’s role as a logistics hub connecting Central and Southeast Europe. The new strategy aims to expand upon these efforts with additional highway corridors, upgrades to rail networks linking major cities like Belgrade with Budapest and Niš, and enhancements to energy transmission systems supporting renewable energy generation.
The fiscal approach underpins this infrastructure focus, with the 2026 national budget allocating approximately 602 billion dinars for capital expenditures aimed at transport and energy projects. This spending is viewed as essential for driving economic growth. Improved transport corridors are expected to lower supply chain expenses, attract foreign investment, and strengthen regional trade connections.
A significant component of the Serbia 2035 strategy is its commitment to artificial intelligence and digital technology. Serbia has been proactive in establishing an AI development framework since launching its first AI strategy in 2019. The current plan aims to integrate AI across various sectors such as healthcare, education, public administration, and industrial production. Government support for domestic AI capabilities includes investments in advanced supercomputing infrastructure.
The State Data Center in Kragujevac already hosts one of the region’s leading supercomputing facilities. Future plans include deploying additional supercomputers by 2026 to enhance capabilities in developing large language models and advanced machine learning applications. A notable initiative involves creating a large AI language model for Serbian, aimed at bolstering digital sovereignty and facilitating AI-driven services across multiple industries.
Human capital development is essential for realizing the goals set forth in the Serbia 2035 strategy. The plan allocates resources toward education reform, research initiatives, and workforce training programs. Emphasis will be placed on expanding STEM education, enhancing university research capabilities, and fostering collaboration between academia and industry to retain skilled labor amidst competition from Western European markets.
Workforce training will target emerging fields such as information technology, robotics, renewable energy engineering, and advanced manufacturing—areas deemed critical for supporting Serbia’s envisioned technological evolution.
Ultimately, the goal of the Serbia 2035 strategy is to enhance productivity and export competitiveness through technological innovation and industrial upgrades. The export sector has already shown considerable growth over recent years; however, it remains heavily reliant on low-value industrial segments like automotive components. Increasing technological sophistication within production processes is seen as vital for sustaining long-term export growth.
Despite these aspirations, Serbia faces fiscal challenges that may impact implementation timelines. The country maintains a fiscal deficit target of around 3 percent of GDP as part of international financial commitments aimed at ensuring macroeconomic stability. Public debt levels are currently manageable but necessitate careful fiscal oversight when financing large-scale infrastructure projects to ensure they yield sustainable economic returns.
The Serbia 2035 strategy represents a comprehensive agenda for structural economic transformation intended to reposition the country within Europe’s evolving economic landscape. Successful execution could solidify Serbia’s status as a regional logistics hub while fostering technological advancements in sectors like artificial intelligence and boosting export competitiveness on both European and global stages. However, achieving these ambitious targets will require consistent policy enforcement and sustained investment over the next decade.
