Serbia’s industrial production recorded limited growth in the first half of 2026, with stronger manufacturing output offset by declines in energy supply and mining. Total industrial production increased 0.7% in January-June. Manufacturing, which represents more than three quarters of the industrial index, grew 1.8% during the period. Electricity, gas and steam supply declined 4.2%, while mining output fell 0.6%.
Electricity Production Declines Through the Second Quarter
The energy sector recorded year-on-year declines in every month of the second quarter. Electricity production fell 7.7% in April, followed by an 8.6% decline in May and a 10.4% decrease in June. The weaker energy performance contributed to the limited overall expansion of industrial production during the first half of the year.
Capital Goods and Motor Vehicles Lead Manufacturing
Manufacturing performance varied substantially across product categories.
Production of capital goods increased 11.3%, while intermediate-goods output rose 2.4%. Energy production declined 3.6%, while non-durable consumer goods fell 1.2%. Durable consumer-goods production recorded a sharper contraction of 13.2%.
Only 12 of Serbia’s 24 manufacturing branches recorded growth during the period. Motor-vehicle production was the strongest individual outlier, increasing 47.1%.
Industrial Growth Remains Concentrated
The first-half figures show industrial expansion concentrated in a limited number of manufacturing activities rather than across the broader factory sector. The uneven performance comes as domestic demand, exports and GDP strengthen, while the industrial base supplying that activity is expanding at a considerably slower pace.
