NBS: Serbia registered 2 pct real GDP growth in 2025

BELGRADE - In 2025, Serbia posted real GDP growth of 2 pct reflecting upturns in most service sectors and industry, the National Bank of Serbia (NBS) said on Wednesday, quoting an estimate by the national statistical office.

"A decline was recorded in the construction and less so in agriculture due to unfavourable weather conditions. The physical volume of industrial production grew by 1.0 pct, with manufacturing going up by 1.2 pct. The slackening in manufacturing since October has been largely a consequence of problems in the production of petroleum products, while a considerable production rise this year was recorded in the production of motor vehicles and automobile tyres. Mining growth came at 4.4 pct, while the energy sector recorded a decline of 2.0 pct, driven by reduced hydropower potential due to the drought," the NBS said in a statement.

"The service sector growth is indicated primarily by the estimated real increase in turnover in retail trade (4.2 pct), catering (1.5 pct) and transport (4.7 pct). On the other hand, the number of tourist overnight stays went down by 3.3 pct y-o-y. Reduced activity in construction is indicated by the 8.4 pct lower value of executed works, producing modest growth in fixed investments of 0.9 pct. The Statistical Office of the Republic of Serbia estimates a 0.3 pct decline in agricultural production.

Average annual inflation in 2025 stood at 3.8 pct. According to an estimate by the Statistical Office of the Republic of Serbia, December y-o-y inflation was 2.8 pct, which is within the NBS target band of 3±1.5 pct.

Favourable labour market trends continued into 2025, with a rise in wages and living standards, as well a further reduction in unemployment. Average nominal wage rose by 11.2 pct, with a real increase of 7.1 pct, preserving the purchasing power of the population. According to the Labour Force Survey, the unemployment rate stood at 8.2 pct in Q3.

When it comes to external trade trends, according to the Statistical Office of the Republic of Serbia, goods exports are estimated to have grown by 8.0 pct in 2025, despite a low external demand, as a result of rising export capacities, in the automobile industry primarily. At the same time, estimates suggest that goods imports have risen by 7.3 pct, driven by the continued rise in imports of intermediate goods and equipment, as well as higher imports of consumer goods resulting from a higher disposable income," the NBS also said.