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Banks (Finance)

Serbia's Economic Progress: A Decade of Stability and Growth

Strategic Insights

— 2 min read

Over the past thirteen years, Serbia has undergone a significant transformation, boasting impressive economic growth, stability, and inflation control. The National Bank of Serbia, under the leadership of Governor Jorgovanka Tabakovic, has made substantial contributions to this progress. Inflation has been reduced by 10 percentage points, from 12.2 per cent at the end of 2012 to 2.2 per cent in October 2013, and has remained relatively stable, comparable to the average inflation in the European Union. The country's foreign exchange reserves have increased significantly, reaching a record 28.3 billion euros at the end of July 2025.

Key Takeaways:

  • Serbia's business environment and economic picture have improved significantly over the past thirteen years, with inflation comparable to other Central European countries.
  • The National Bank of Serbia has ensured a stable dinar exchange rate against the euro, with a 1.2 per cent appreciation in nominal terms.
  • Foreign exchange reserves have increased almost threefold, to 28.3 billion euros at the end of July 2025, with a 2.8 times increase from the same month in 2012.
  • Dinar savings have reached record levels, exceeding 200 billion dinars, while foreign currency savings have reached almost 16 billion euros.
  • Foreign direct investment has increased by 38 billion euros from 2013 to 2024, with a record inflow of 5.2 billion euros in 2024.
  • Interbank fees have been reduced five to six times, trading fees have been halved, and the number of transactions carried out through electronic and mobile banking has doubled.
  • The number of payment card transactions at physical points of sale of domestic merchants has increased from 81.5 million to 628.8 million.
  • The official middle exchange rate of the dinar has been applied when pricing and charging for travel arrangements abroad since July 2019.
  • Governor Jorgovanka Tabakovic was named the best governor in the world and the best European governor by the London-based magazine The Banker in January 2020.
  • The National Bank of Serbia received the City of Belgrade's "Hero of Belgrade" award for its impeccable functioning during the coronavirus pandemic.
  • Serbia was awarded an investment-grade credit rating in October 2024, marking the first time a non-EU country in Southeast Europe had achieved this.

Statistics:

  • Foreign exchange reserves increased from 5.5 billion euros in 2012 to 24.1 billion euros in 2025 (437% increase).
  • Dinar savings exceeded 200 billion dinars, a 10-fold increase from 2012.
  • Foreign currency savings reached almost 16 billion euros, a 90% increase from 2012.
  • Foreign direct investment increased by 38 billion euros from 2013 to 2024.
  • The number of payment card transactions at physical points of sale of domestic merchants increased from 81.5 million to 628.8 million.
  • The number of electronic banking transactions doubled from 72.8 million to 142.5 million.
  • The number of mobile banking transactions increased from 0.5 million to 109.3 million.
  • Inflation has been on a declining trajectory since April 2023, returning to the target range of 3 +- 1.5 per cent in May 2024.

Sources:

  • Tabakovic, J. (2025). Annual Report of the National Bank of Serbia.
  • The Banker. (January 2020). Governor Jorgovanka Tabakovic named the best governor in the world.
  • City of Belgrade. (2020). Hero of Belgrade award for the National Bank of Serbia.
  • Standard & Poor's. (2024). Serbia receives investment-grade credit rating.

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