Serbia’s economy under Vučić: Far from a miracle

Branimir Jovanovic

No 113, wiiw Policy Notes from The Vienna Institute for International Economic Studies, wiiw

Abstract: This note assesses Serbia’s economic performance under the Serbian Progressive Party (SNS), which has governed the country since 2012, ahead of the parliamentary elections to be held on 25 October 2026. It compares the SNS years with the 2001-2011 period and with other economies in the region. Average annual growth in Serbia during the 2012-2025 period was 2.4%, against 4.2% in the previous decade, and lower than in most neighbouring countries. Unemployment has fallen, but employment has stagnated since 2019, and most wage gains have been absorbed by higher living costs. Inequality has increased, while social protection spending has declined. FDI inflows have been no higher than before, and the income earned by foreign investors now exceeds new inflows. Public investment has risen strongly but has been concentrated on motorways, while other infrastructure has fallen further behind the EU average and domestic private investment has stagnated. The record is far from the economic miracle often claimed.

Keywords: Serbia; Western Balkans; economic growth; labour market; inequality; foreign direct investment; public investment (search for similar items in EconPapers)
JEL-codes: D31 E22 E24 F21 H53 H54 O52 (search for similar items in EconPapers)
Pages: 17 pages including 12 Figures
Date: 2026-10
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Published as wiiw Policy Note

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