Serbia’s industrial production posted only modest growth in the first half of 2026, with expansion concentrated in a limited number of manufacturing activities while energy and several consumer-goods segments contracted.
Industrial output records limited growth
Total industrial production increased 0.7% in January-June. Manufacturing, which represents more than three quarters of the industrial index, expanded 1.8%. Other major industrial segments moved in the opposite direction. Electricity, gas and steam supply declined 4.2%, while mining output fell 0.6%. Electricity production recorded year-on-year declines throughout the second quarter, including decreases of 7.7% in April, 8.6% in May and 10.4% in June.
Capital goods lead manufacturing expansion
The structure of industrial growth also varied significantly between product categories. Production of capital goods rose 11.3%, while intermediate-goods output increased 2.4%. Energy production decreased 3.6%, while non-durable consumer goods fell 1.2%. Durable consumer-goods production recorded a larger contraction of 13.2%. Only 12 of Serbia’s 24 manufacturing branches recorded growth during the period.
Motor vehicle production stands out
Motor vehicle manufacturing was the strongest individual performer, with production increasing 47.1%. The overall figures therefore reflected expansion in a relatively limited group of industrial activities rather than a broad-based increase across Serbia’s manufacturing sector.
At the same time, domestic demand, exports and GDP were strengthening, while the industrial base supplying that activity was growing at a considerably slower pace.
