Serbia is located in the heart of Southeast Europe (SEE), specifically the West Balkans. The West Balkans region is home to emerging markets of varying size, all of which have economic development plans focused on bringing their legal, labor, and tax codes; educational and medical systems; energy, transportation, and telecommunications infrastructures; and security/defense frameworks up to European standards. 

With a population of approximately 6.7 million, Serbia is the largest and most prosperous economy in the West Balkans, serving as a regional hub and springboard for companies to access the larger regional market. 

Nominal GDP in 2023 is projected to reach $73.96 billion, which is $ 11,206 per capita. GDP based on purchasing power parity (PPP) stood at $173.4 billion, which is $26,270 per capita. Serbia’s strongest sectors are energy, information and communications technology (ICT), the automotive industry, machinery, mining, and agriculture. Primary industrial exports are automobiles, base metals, furniture, food processing, machinery, chemicals, sugar, tires, clothes, pharmaceuticals. Trade plays a major role in Serbia’s economic output. Serbia is in the gradual process of EU accession and receives substantial EU development funds. Serbia’s main trading partners are Germany, Italy, China, and Russia. 

EU member states, the United States, Russia, China, and the neighboring Balkan countries are very active in Serbia, focusing on procurements, investments, continued trade liberalization, energy, and infrastructure. Serbia is the fourth biggest recipient of Chinese investment in Europe, particularly in greenfield projects, and actively participates in China’s Belt and Road Initiative. American investment in Serbia now totals over $4 billion and is growing. 

In 2022, U.S. exports of goods to Serbia were $688.4 million. Primary exports from the United States include aviation parts and machines, pharmaceutical and medical products, vinyl chloride polymers, as well as tobacco and optical instruments. U.S. imports from Serbia have grown from $303 million in 2019, to $369.3 million in 2020, $512.9 million in 2021 and $514.2 million in 2022 (Statistical Office of the Republic of Serbia data). FIAT automobiles are a major U.S. import from Serbia, followed by tires, frozen fruits and nuts, and hunting rifles and ammunition. In June 2020, Serbia ranked 102 among U.S. trade partners.

Despite its relatively small size, Serbia’s emerging economy represents significant opportunities for exports and investments across a wide range of sectors, particularly infrastructure, ICT, healthcare, agribusiness, energy, and environmental technologies. While certain segments remain highly price sensitive, rising prosperity among business and government presents a window in which they can afford Western brands of high quality. Key challenges remain in public procurement, bureaucratic processes, corruption, and inefficient commercial courts. However, the market is ripe for new U.S. products, which are viewed positively for their value, quality, and price.

Political Environment

For background information on the political and economic environment of the country, please click on the link to the U.S. Department of State Countries & Areas website.