WB Lowers Serbia’s Economic Growth Prediction in 2026 from 3 to 2.7 Percent

Money (BetaPhoto/Milos Miskov)

The World Bank (WB) has lowered the prediction of Serbia’s economic growth this year from three to 2.7 percent, after momentum was lost in 2025 due to a series of domestic and global events.

In the regular economic report for the Western Balkans, presented on April 29, the prediction of Serbia’s economic growth in 2027 was lowered from 3.1 to three percent. Growth has slowed, reflecting lower private investment and a negative contribution of net exports, while risks are increased in the context of the conflict in the Middle East, which affects external demand, prices of imported energy and investor sentiments, it was stated in the report that covers Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia and Serbia.

According to the report, negative risks pertain to state-owned companies that face problems, lack of progress in the implementation of the next phase of structural reforms and increased global and domestic uncertainty.

As WB stated, inflation will remain elevated in 2026 due to the expected effects of the conflict in the Middle East on fuel prices, but will remain within the targeted range in the middle period. Fiscal policy in 2026 should be mostly under control, if it turns out that the measures for alleviating the energy crisis are temporary or neutralized by measures on the side of spending.