Serbia’s international financial position continued to expand in the first half of 2026, with both foreign assets and liabilities increasing. The country’s net debtor position widened in absolute terms, while its size relative to GDP edged down slightly, reflecting growth in the economy alongside rising external obligations.
By the end of June, Serbia’s negative net international investment position had increased by EUR 1.7 billion to EUR 53.5 billion. The ratio of the deficit to GDP improved from 58.4% to 58.2%. The difference between the two measures reflects the impact of nominal economic growth: the gap between external assets and liabilities increased in euro terms, but represented a slightly smaller share of the economy.
Foreign Liabilities Exceed Assets by EUR 53.5 Billion
Serbia’s foreign financial assets reached EUR 57.0 billion at the end of June, supported by higher foreign-exchange reserves and increased holdings of foreign assets by domestic residents.
Financial liabilities to foreign investors and creditors stood considerably higher, at EUR 110.5 billion. Direct investment remained the largest liability category, while portfolio liabilities recorded the fastest growth. Portfolio liabilities increased by EUR 4.1 billion during the first six months of 2026, reaching EUR 14.8 billion as the Serbian state and domestic companies issued bonds on international markets.
Bond Issuance Increases Exposure to Market Conditions
The growing share of portfolio liabilities changes the structure of Serbia’s external financing. Foreign direct investment generally represents longer-term capital, while equity financing does not carry fixed repayment obligations.
Portfolio debt, by contrast, is more directly affected by movements in international bond yields, credit spreads and investor demand. Its financing costs and refinancing conditions can therefore change as global market sentiment shifts. The expansion of this category means Serbia’s external position is becoming more exposed to the same international bond-market pressures that have increased borrowing costs across developed economies.
Reserves and Long-Term Debt Support Stability
Foreign-exchange reserves stood at EUR 29.6 billion at mid-year, while most of Serbia’s external debt had long-term maturities. The country is increasingly active in international securities markets, alongside its established role as a destination for foreign factories, direct investment and bank financing. This provides access to diversified funding sources and larger capital volumes, while increasing the importance of managing the accumulated stock of external assets and liabilities.
The development of Serbia’s international investment position therefore reflects not only annual capital movements, but also the growing volume and changing composition of financial claims between domestic residents and the rest of the world.
