wages increase

Serbia’s Economic Transition Towards Domestic Demand

Serbia's economic landscape is currently experiencing a notable shift as it increasingly relies on domestic demand amid weakening external influences. Over the past decade, the country's growth has primarily stemmed from exports to the European Union, foreign direct investment, and participation in international industrial value chains. However, these external drivers are now losing traction. As external demand diminishes, domestic consumption is emerging as a crucial growth engine. Factors such as rising wages, fiscal expansion, and stable employment conditions are contributing…