site.btaSerbia’s Economic Growth Projected at 2.8% in 2025 - World Bank Report

The World Bank projected that Serbia’s economy will grow by 2.8% in 2025, Serbian public broadcaster RTS reported on Tuesday. In its regular economic report, the World Bank forecast that Serbia’s growth will recover to between 3% and 4% in the medium term.

Following solid results in 2024, the country’s economy lost momentum due to lower levels of private investment and reduced net inflows of foreign direct investment amid global uncertainty, the report said.

Growth slowed to around 2% in the first half of 2025 as a result of a sharp decline in construction activity and weaker agricultural output, affected by adverse climate conditions and natural disasters.

In the labour market, unemployment continued to decline, reaching an average of 8.8% by mid-2025, while the employment rate remained at a record 51.6%.

The report said that Serbia and the wider Western Balkans region need to focus on creating skilled jobs to sustain economic growth and move closer to the European Union’s level of development.

Economic growth in the Western Balkans slowed in 2025 as inflation reduced consumption and heightened uncertainty curbed trade and investment, the report noted.

According to the World Bank’s regular economic outlook for the Western Balkans, overall regional growth is expected to reach 3% in 2025, accelerate to 3.1% in 2026, and rise further to 3.6% in 2027.