Money transfers from Serbian workers abroad reached €2.02 billion in the first half of 2026, significantly exceeding net foreign direct investment and helping narrow the country’s current-account deficit. Net workers’ remittances rose 24.7% year on year, according to data presented in the September edition of the Macroeconomic Analyses and Trends bulletin. Net foreign direct investment stood at €840.2 million, meaning remittance inflows were more than twice the value of net FDI during the period.
Remittances support the external balance
Higher transfers from workers abroad contributed to a 30.5% reduction in Serbia’s current-account deficit, which narrowed to €1.39 billion. The improvement was also supported by a smaller goods deficit and an increased surplus in international services. Remittance inflows provide Serbian households with additional funds for consumption, housing, education and debt repayments. They can also contribute to lower poverty and support local economies in areas with high levels of outward migration.
FDI inflows decline
The economic role of remittances differs from that of foreign direct investment. Transfers from workers abroad primarily increase household income and consumption, while FDI is more directly associated with financing factories, equipment, technology and export capacity. Gross inward FDI declined 29% to €1.22 billion during the first half of 2026.
Net FDI nevertheless remained slightly above its level a year earlier because investment by Serbian residents abroad also decreased. The figures therefore reflect a slowdown in new gross foreign investment rather than a withdrawal of foreign investors from Serbia.
Migration and investment dynamics
The scale of remittance inflows also reflects Serbia’s continuing labour migration. Large transfers can support household spending, but they may also contribute to higher imports and property prices without directly increasing productivity. At the same time, outward migration reduces the number of working-age residents in the domestic economy.
For Serbia’s current account, remittances represent an important source of financial support. Their role differs from productive investment, which can expand domestic production capacity, technology and exports. During the first half of 2026, financial transfers from Serbian citizens working abroad therefore exceeded net capital entering the country through foreign direct investment.
