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Serbia’s External Deficit Narrows as Foreign Investor Dividend Payments Increase

Serbia’s current-account deficit narrowed to 4.0% of GDP in the second quarter of 2026, compared with 4.7% in 2025, as stronger exports and lower gas import prices improved the country’s external trade position. Increased dividend payments to foreign investors and slower foreign direct investment (FDI) inflows are changing the balance between external earnings and new capital entering the economy. The improvement in the goods and services balance during the first seven months was supported by automotive production, mining exports and…