Serbia’s external position improved in the first half of 2026 as stronger exports, services and remittances reduced the current-account deficit, while lower foreign direct investment and higher dividend outflows changed the composition of external financing.
The current-account deficit narrowed 30.5% to €1.39 billion, according to data presented in the September edition of the Macroeconomic Analyses and Trends bulletin. The goods deficit decreased 13.5% to €2.76 billion, while the services surplus expanded 13.4% to €1.34 billion.
Services and Remittances Strengthen the External Balance
Telecommunications, computer and information services remained Serbia’s largest service-export category. Revenue from these services increased 4.9% to €2.33 billion. Net workers’ remittances provided another significant source of foreign currency, rising 24.7% to €2.02 billion. The stronger performance of goods and services exports, together with higher remittance inflows, helped reduce the current-account shortfall during the period.
The financial account, however, showed a different trend. Gross inward foreign direct investment fell 29% to €1.22 billion, while net FDI remained broadly stable at €840.2 million, partly because Serbian investment abroad also declined.
Dividend Outflows Increase
At the same time, net dividend outflows rose 58.1% to €1.51 billion, while total net income outflows from direct investment increased 14.5% to €2.31 billion. The figures reflect the presence of a mature stock of foreign-owned businesses in Serbia. Previous investment continues to support domestic production and exports, while also generating profit distributions to overseas owners.
Portfolio investment provided a substantially larger source of external financing. Portfolio inflows reached €3.82 billion, largely reflecting international debt issuance by the state and companies. Serbia issued a three-tranche eurobond worth around €3 billion, while Telekom Srbija raised approximately €1.95 billion through international bonds.
Debt Issuance Raises Foreign-Exchange Reserves
The international financing transactions contributed to an increase of €674.5 million in foreign-exchange reserves. At the same time, the composition of external funding shifted more toward debt. During the first half of the year, the National Bank of Serbia sold a net €755 million on the domestic foreign-exchange market. The narrower current-account deficit therefore coincided with stronger export and service earnings, higher remittances and substantial portfolio inflows, alongside lower gross FDI and increased income outflows.
