Serbia attracted €24.4 billion in foreign direct investment between 2020 and 2025, with almost 60% allocated to tradable sectors, strengthening the connection between foreign capital and the country’s export capacity. Manufacturing received around €6.3 billion during the period, while investment in scientific, technical and innovation-intensive activities also increased.
The composition of foreign investment is becoming increasingly relevant alongside headline inflow figures, as the impact of capital on production, exports and integration into international supply chains gains greater importance.
Manufacturing investment expands export capacity
The manufacturing allocation is already reflected in Serbia’s trade performance. Goods exports increased 9.2% in January-July 2026, while manufacturing exports grew 9.3%, indicating that part of the foreign-owned production capacity established through previous investment is entering its operating phase.
The country’s FDI has also become geographically more diversified. European Union investors remain the largest source of foreign capital, while the share of Asian investment has increased. The broader investor base reduces reliance on a single source of capital while exposing Serbia to different industrial cycles, trade policies and supply-chain strategies.
Current inflows remain significant
Gross FDI inflows reached €1.5 billion in January-July 2026, while net inflows stood at approximately €1.0 billion, broadly in line with the previous year. The figures remain below the exceptional annual peak recorded in 2024, while the sectoral composition of investment increasingly determines its contribution to the Serbian economy. Manufacturing remains central to the investment model, alongside growing allocations to scientific, technical and innovation-intensive activities.
Higher-value sectors gain importance
The investment structure places greater emphasis on the extent to which foreign capital contributes to productivity, exports, supplier development and higher-value employment. Manufacturing provides the main link between FDI and export growth, while scientific, technical and other higher-value services could play a growing role in Serbia’s integration into European industrial supply chains. The performance of the investment cycle is increasingly reflected in operating production facilities, export receipts and local value added, alongside the volume of capital entering the country.
