Serbia’s current-account deficit declined significantly in the first five months of 2026, supported by stronger merchandise exports, higher manufacturing shipments and continued growth in the country’s services surplus, according to data from the National Bank of Serbia (NBS).
The external deficit reached approximately €561 million between January and May 2026, representing a 68.9% year-on-year reduction compared with the same period of 2025. The improvement strengthened Serbia’s external-financing position despite ongoing uncertainty in European markets.
Trade Balance Improves Through Export Growth
The reduction in the current-account deficit was supported by improvements in both goods trade and services. Serbia’s goods-trade deficit decreased by 21.7% year on year, while the country’s services surplus expanded by 30.4% during the same period. Total goods exports increased by approximately 8%, with manufacturing exports recording growth of 8.6%.
Exports of motor vehicles were among the strongest contributors, rising by approximately 50.8%. The increase supported industrial activity, while also increasing the importance of conditions in the European automotive market for Serbia’s export performance. The European Union accounted for 63.1% of Serbia’s goods exports in the January-May period, making the bloc the country’s largest export destination.
Services Sector Strengthens External Position
The increase in the services surplus reflected continued expansion in export-oriented activities, including information technology, professional services, transport and other service industries. The stronger services balance contributed to the overall improvement in Serbia’s external accounts and reduced pressure on foreign financing requirements. Net foreign direct investment covered Serbia’s current-account deficit during the first five months of 2026, supporting the country’s external stability.
Foreign Reserves Remain at High Level
Serbia’s foreign-exchange reserves remained elevated at approximately €29.6 billion, providing the National Bank of Serbia with a significant buffer against external pressures and supporting exchange-rate stability. The latest figures show a stronger external position compared with the previous year. However, future developments will depend on export composition, energy-import costs and economic conditions in the European Union. The increase in vehicle exports has contributed to short-term trade gains, while broader diversification of export activities remains important for reducing exposure to individual industrial sectors.
