Household demand became a stronger contributor to Serbia’s economic expansion in the first half of 2026, supported by rising real wages, retail turnover and private consumption. Real retail turnover increased 7.1% in January-June compared with the same period a year earlier. In the second quarter, retail sales were 5.7% higher year on year, with growth recorded across major product categories.
Retail sales expand across key categories
Fuel retailing recorded 7.6% real growth in the second quarter, while sales of non-food products increased 7.3%. Retail turnover for food, beverages and tobacco rose 6.8% in real terms. Private consumption increased 4.0% in the second quarter and contributed 2.6 percentage points to Serbia’s GDP growth.
Real earnings support household demand
Higher household purchasing power accompanied the increase in consumer activity. Average net earnings rose 8.4% in real terms during the first six months of the year. The average net wage in June reached €1,026, representing a 9.4% real increase year on year. Household purchasing power therefore accounted for a growing share of economic activity, with consumption providing direct support to retail, services and other consumer-facing businesses. At the same time, stronger domestic demand increases the role of imports when consumption expands faster than domestic industrial supply, affecting the composition of Serbia’s economic growth.
