Foreign direct investment (FDI) into Serbia has declined sharply in 2025, reflecting the combined effects of a high base last year, economic slowdown in Europe and domestic political uncertainty, data from the National Bank of Serbia (NBS) indicated on December 18.

FDI inflows in October amounted to €251.7mn, down 15.2% from the same month a year earlier. Over the January-October period, total FDI reached €2.7bn, while net inflows — after accounting for Serbian residents’ investments abroad — totalled €1.7bn.

The largest shares of investment in the first half of 2025 were in manufacturing (23.9%), professional, scientific and technical services (18.9%), construction (15.6%) and wholesale and retail trade (14.5%). Investors were primarily from the European Union (68.6% of total FDI) and Asia (9.3%).

Financial loans contributed an additional net inflow of €1.5bn over the ten months, largely due to increased borrowing by companies (€1.5bn) and banks (€178mn), while the government recorded net deleveraging of €283.7mn.

The decline in FDI this year partly reflects a high base in 2024, when Serbia recorded record inflows of €5.1bn, including unusually large one-off investments. External pressures, including sluggish growth on the continent, has weighed on investment, while domestic political unrest — culminating in the resignation of the prime minister and months of protests — further dampened investor sentiment.