Serbia’s industrial production recorded modest annual growth in June 2026, with total output increasing by 0.8% year on year, while cumulative industrial production in the first six months of the year was 0.7% higher compared with the same period in 2025, according to data cited by Dnevni list Danas. The June figures showed stronger manufacturing activity, but overall industrial performance remained constrained by weaker energy-sector output and uneven results across individual branches.
Manufacturing Growth Offset by Energy Decline
Manufacturing production increased by 2.8% compared with June 2025, representing the strongest positive contribution to industrial activity. At the same time, mining output declined by 1%, while production of electricity, gas, steam and air-conditioning fell by 10.4%. The contraction in the energy segment reduced the overall impact of manufacturing growth on total industrial production.
Seasonally adjusted monthly data showed a weaker trend. Total industrial production decreased by 0.4% compared with May, while manufacturing output declined by 1.3%. The monthly decline indicates that part of the annual increase was influenced by the lower production base recorded in June 2025 rather than a sustained acceleration throughout the second quarter. Industrial performance remained divided among sectors. Output increased in 16 industrial branches, representing 58% of the industrial structure, while production declined in 13 branches, accounting for the remaining 42%.
Automotive, Metals and Electrical Equipment Support Exports
Foreign trade data showed that several manufacturing segments continued to expand. Exports of motor vehicles and related equipment reached €513.6 million in June, representing a 52.2% increase compared with the same month a year earlier.
Fabricated metal product exports increased by 53.2%, while exports of electrical equipment grew by 10.5%. Food products, beverages, rubber and plastic products also recorded export growth. The results highlight the importance of automotive production, metals, electrical equipment and selected consumer industries in Serbia’s export performance. Several of these sectors are linked to large foreign-owned industrial facilities, where changes in production capacity, new production lines or major export orders can significantly influence monthly industrial and trade statistics.
Industrial Employment Declines Despite Output Growth
Employment trends showed a different picture from production data. Manufacturing employment declined by 17,422 registered workers in the second quarter compared with the same period a year earlier, according to the Statistical Office of Serbia.
Total registered employment decreased by 14,163 workers, with additional reductions recorded in mining and trade. The divergence between higher output and lower employment may reflect changes in productivity, increased automation, improved capacity utilisation or restructuring within industrial companies. Production growth concentrated in a smaller number of large exporters can also increase industrial output figures while employment declines continue in weaker branches or among smaller companies.
Energy Dependence Continues to Affect Industry
Energy production remains one of the main challenges for Serbia’s industrial sector. The 10.4% annual decline in electricity, gas, steam and air-conditioning production increases exposure to imported energy and regional wholesale market conditions. Energy-intensive industries, including metals, chemicals and construction materials, remain particularly sensitive to electricity availability and pricing.
Other industrial segments also continued to face pressure. Machinery and equipment exports weakened in June, while exports of transport equipment outside the main motor-vehicle category recorded a significant decline. Chemicals continued to contribute to a substantial import deficit, while Serbia remained dependent on imported crude oil and other energy inputs.
Economic Growth Relies on Broader Sectors
Serbia’s second-quarter GDP estimate showed economic growth of 3.6%, indicating that overall economic expansion continued despite limited industrial momentum, according to the Statistical Office of Serbia. Consumption, construction, public investment and services accounted for a significant share of economic activity during the period. Industrial data show a mixed performance, with export-oriented factories generating gains in vehicles, metals and electrical equipment, while energy production, employment and several manufacturing branches remain under pressure.
