Overview

Serbia is an upper-middle-income country in Southeast Europe with an estimated population of around 6.6–7 million people and a strategic position at the crossroads between the European Union and the Western Balkans. The economy has shown moderate growth in recent years, with GDP expanding by close to 4 % in 2024 and projected to continue growing in the medium term, driven by private consumption, investment, and resilience in sectors such as services, industry, agriculture and energy.

Despite this progress, Serbia faces structural challenges including declining workforce participation, demographic pressures due to an ageing and shrinking population, and a labour market that remains below EU averages. Unemployment has been gradually decreasing while employment rates have improved, though living standards and wages still lag behind many EU countries. Serbia is a candidate for European Union accession and continues to pursue structural reforms and alignment with EU standards, but progress is uneven and tied to broader governance and institutional developments.

Source: World Bank