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Serbia’s Economy Grows 3.6% as Household Demand Outpaces Industrial Production

Serbia's economy grew an estimated 3.6% year on year in the second quarter of 2026, but the composition of that expansion is becoming increasingly uneven as consumer demand accelerates while industrial activity remains subdued. Retail turnover rose 7% in real terms during the first half of 2026, while real retail growth reached 4.3% year on year in June. Industrial production, by comparison, increased only 0.8% year on year in June. The widening gap between household spending and factory output is…