banking system

Serbia Faces More Demanding Growth Phase as Industrial Weakness Tests Economic Stability

Serbia entered 2026 with a broadly stable macroeconomic framework supported by contained inflation, substantial foreign-exchange reserves, moderate public debt levels, low non-performing loans in the banking sector, rising wages and an investment-grade rating from S&P. The dinar remained anchored, fiscal indicators were manageable, credit activity showed recovery and the balance of payments benefited from services exports and continued foreign direct investment inflows. The Q1 2026 macroeconomic review by the Chamber of Commerce and Industry of Serbia indicated that underlying economic…