Industrial production in Serbia experienced a decline of approximately 5.7 percent in December 2025 compared to the same month in the previous year, as reported by the Statistical Office of the Republic of Serbia. However, for the full year, total industrial production showed a slight increase of about 0.9 percent relative to 2024, indicating a slowdown in activity towards the end of the year.
The decrease in December was primarily driven by a significant drop in manufacturing output, which fell by roughly 8.3 percent year-on-year. In contrast, sectors such as electricity, gas, steam, and air conditioning supply saw marginal growth of about 0.7 percent during the same month. The declining figures in manufacturing suggest weakening demand conditions and heightened cost pressures within industrial supply chains.
For the entirety of 2025, industrial production growth was modest yet positive, with an overall annual index reflecting a 1.0 percent increase and manufacturing output expanding around 1.2 percent compared to 2024. These annual statistics indicate some resilience within Serbia’s industrial sector throughout the year; however, they also reveal that growth was uneven and more pronounced in earlier months rather than during the final quarter.
Monthly and quarterly performance indicators throughout 2025 displayed variability; for instance, industrial production in November recorded a decrease of approximately 3.4 percent on a year-on-year basis. Earlier months had shown both slight growth and contractions compared to previous years. Additionally, broader European industrial activity faced challenges at the end of 2025, with several major regional producers reporting declines in output for December, highlighting a general slowdown across manufacturing and capital goods sectors.
The inconsistent pattern of industrial output in Serbia raises concerns regarding future growth prospects, export competitiveness, and labor market conditions. While the sector managed to avoid outright contraction in 2025 due to modest annual growth, the sharper downturn observed in December indicates cyclical weaknesses that necessitate close monitoring of demand trends, investment flows, and inflationary pressures on inputs moving forward.
Overall, Serbia’s industrial sector has seen moderate growth over recent years, with production increasing at an average rate through 2025. Nevertheless, several months have recorded weaker performance compared to prior years, illustrating the ongoing challenge of maintaining momentum within core manufacturing and energy-intensive industries amid evolving domestic and global economic landscapes.
