private sector

Serbia’s Public Wage Growth Raises Fiscal and Inflation Considerations

Public-sector wage growth has become a more significant factor in Serbia’s 2026 economic outlook, adding new fiscal and inflation considerations alongside private-sector labour market trends, according to MAT’s July/August analysis. For several years, private-sector wage growth was the main indicator of economic momentum, reflecting labour shortages, foreign investment, export-sector competition and tighter labour-market conditions. Since mid-2025, however, public-sector wage developments have gained greater importance across several categories. Higher Public Wages Increase Budget Commitments Public-sector wage growth affects government finances because…