Serbia’s merchandise trade deficit declined by 10.9% to €5.66 billion in the first nine months, as export growth outpaced the increase in imports and improved the country’s external trade balance.
Exports rose 8.9% to €26.89 billion between January and September, while imports increased 4.9% to €32.56 billion, according to the Statistical Office of the Republic of Serbia. Export coverage of imports improved to 82.6%, compared with 79.6% in the same period a year earlier. The figures reflect the contribution of export-oriented manufacturing, particularly automotive production, electrical equipment and metals, although Serbia remains dependent on imported energy, machinery and industrial components.
Automotive and electrical machinery lead exports
Road vehicles generated approximately €2.82 billion in export revenue, making them Serbia’s largest merchandise export category. Electrical machinery followed with €2.80 billion, while metal ores and residues accounted for €1.90 billion.
These industries are closely connected to international manufacturing supply chains, particularly European automotive and industrial production. Their performance highlights the importance of Serbia’s manufacturing base to export earnings.
Export values do not directly measure domestic value added, profitability or employment. The sector’s performance remains exposed to changes in European industrial demand, automotive investment and manufacturing competitiveness.
Germany remains Serbia’s largest export destination
Germany purchased approximately €4.07 billion of Serbian goods, followed by Italy with €2.30 billion and Bosnia and Herzegovina with €1.50 billion.
The European Union accounted for 58.1% of Serbia’s total merchandise trade, underlining the importance of European markets to domestic manufacturers.
This concentration provides access to major industrial markets but also exposes Serbian exporters to changes in European consumption, production and investment. Weakness in German manufacturing or automotive demand could affect supplier orders and industrial activity in Serbia.
China leads imports of industrial goods and equipment
China remained Serbia’s largest import source, supplying approximately €5.30 billion in goods. Germany followed with €3.80 billion, while imports from Italy reached €2.20 billion.
By product category, electrical machinery represented the largest import group at €2.40 billion, followed by petroleum and petroleum products at €2.20 billion and road vehicles at €1.90 billion.
The import structure reflects the reliance of Serbian manufacturers and consumers on foreign equipment, energy, components and finished products. Expanding domestic supplier networks and higher-value production could increase the share of export revenue retained within the economy.
CEFTA markets generate a substantial trade surplus
Serbia recorded a €2.53 billion trade surplus with countries participating in the Central European Free Trade Agreement (CEFTA).
Exports to these markets totalled approximately €3.69 billion, compared with imports of €1.17 billion. Export coverage of imports reached 316.9%. Regional exports included agricultural products, beverages, vehicles, pharmaceuticals and electrical machinery, making neighbouring Western Balkan markets an important destination for Serbian producers.
Monthly deficit also declines
Serbia’s merchandise trade deficit in September stood at approximately €583 million, compared with around €599 million a year earlier. Both exports and imports continued to expand. The cumulative deficit reduction of 10.9% was slightly below the 11.3% improvement recorded during the first eight months.
Despite the stronger trade balance, Serbia continues to run a substantial merchandise deficit. Future performance will depend on European industrial demand, energy import costs, domestic production capacity and the development of export-oriented manufacturing. For industrial investors and policymakers, the figures highlight the importance of improving manufacturing productivity, strengthening local supply chains and increasing domestic value added alongside export growth.
