Foreign direct investment (FDI) has played a central role in expanding Serbia’s export-oriented economy, with the country attracting €24.4 billion in foreign capital between 2020 and 2025. Nearly 60% of that investment went into tradable sectors, including approximately €6.3 billion allocated to manufacturing, helping sustain exports during periods of weaker European demand.
The pace of new investment has since slowed from its 2024 peak. Data from the National Bank of Serbia (NBS) show that gross inflows reached €5.2 billion in 2024, before declining to €3.3 billion in 2025.
FDI Inflows Moderate After 2024 Peak
Serbia recorded €1.7 billion in gross FDI inflows during the first eight months of 2026, while net inflows amounted to €1.3 billion. The net figure was approximately unchanged from the corresponding period a year earlier, according to the NBS.
The figures indicate a moderation in investment rather than a halt in foreign capital entering the country. They also point to the limits of relying on continually increasing annual inflows as the main driver of economic expansion. The contribution of existing investors is becoming increasingly important. Reinvestment, the development of local suppliers, management expertise, engineering, research and higher-value services all influence how foreign capital affects domestic productivity beyond the initial establishment of production facilities.
Investment Expands Into Higher-Value Activities
The sectoral composition of FDI is showing signs of diversification. The NBS has reported growing participation by scientific, technical and innovative activities with higher value added, alongside manufacturing investment.
The geographical sources of capital are also broadening. The European Union remains Serbia’s largest source of FDI, while Asian countries have increased their importance as investors. A wider investor base can reduce dependence on individual capital markets and connect Serbian suppliers with different technologies and commercial networks.
Energy and ESG Factors Gain Economic Importance
Environmental, social and governance considerations are becoming increasingly relevant to investment decisions. Investors are paying attention not only to labour costs and taxation but also to energy security, carbon exposure, corporate governance, workforce quality and supply-chain transparency.
The NBS presentation does not include emissions indicators or company-level ESG data, meaning it does not establish Serbia’s performance in these areas. Energy shocks and institutional competitiveness are increasingly relevant to the country’s broader economic conditions.
Domestic Companies Face a Larger Role in Supply Chains
Serbia’s FDI strategy has helped establish substantial export capacity, particularly through investment in tradable industries and manufacturing. The next stage depends increasingly on whether foreign investors expand their existing operations and strengthen links with domestic businesses.
A greater role for Serbian companies in supplier networks, combined with reinvestment in engineering, research and other higher-value activities, would increase the domestic economic contribution of foreign-owned production.
