Household demand became a significant contributor to Serbia’s economic expansion in the first half of 2026, supported by stronger real wages, retail turnover and private consumption. Retail sales increased 7.1% in real terms in January-June compared with the same period a year earlier. Growth remained strong in the second quarter, when retail turnover rose 5.7% year on year.
Retail Sales Expand Across Major Categories
Fuel retailing recorded 7.6% real growth in the second quarter, while sales of non-food products increased 7.3%. Food, beverages and tobacco retail sales also expanded, rising 6.8% in real terms during the quarter. Private consumption increased 4.0% in the second quarter and contributed 2.6 percentage points to GDP growth, making household spending a substantial component of overall economic activity.
Real Wage Growth Supports Household Demand
The rise in consumption was accompanied by stronger wage growth. Average net earnings increased 8.4% in real terms during the first six months of 2026. The average net wage reached €1,026 in June, representing a 9.4% real increase year on year. Higher purchasing power has consequently become a more direct source of economic growth, alongside the investment and export activity that had played a larger role during earlier phases of Serbia’s expansion.
Consumer Demand Increases Import Exposure
The stronger household economy is supporting retail, services and other businesses dependent on consumer spending. At the same time, faster domestic consumption increases the role of imports when local industrial supply does not expand at the same pace. Continued growth in household demand therefore affects both consumer-facing activity and the share of additional spending directed toward imported goods.
