Serbia unveiled on an ambitious €48bn economic development plan on March 7 aimed at boosting growth, infrastructure and living standards through 2035, according to a government press release.

President Aleksandar Vucic presented the Serbia 2030 strategy at a conference in Belgrade, highlighting investments across infrastructure, defense, digitalisation and artificial intelligence.

The plan allocates €17bn by 2030 and a further €31bn by 2035, with the government projecting the country’s GDP to rise to €133bn by 2030, up from nearly €90bn last year.

Finance Minister Sinisa Mali said the programme aims to raise the minimum wage from €551 today to €760 by 2030. Vucic forecast the average salary to reach €1,700 and pensions €750 by the same year, with higher levels expected in Belgrade.

“Investments in infrastructure and capital projects are aimed at creating a better future for our children,” Mali said, Tanjug reported, noting that at least €15bn will target the defense sector and civilian projects. Mali also highlighted preparations for Expo 2027 in Belgrade as a key driver for exports, investment and job creation.

Serbia has made significant economic strides over the past decade, including stabilising inflation and strengthening its banking sector. Inflation, which peaked at 12.2% in 2012, has aligned with regional peers, while non-performing loans fell from 22.4% in 2015 to 2.1% in December 2025. The average gross monthly salary exceeded €1,000 for the first time in December 2025, at €1,057.

The Serbian dinar has remained stable, exports cover 92% of imports, and the country achieved its first investment-grade rating from Standard & Poor’s in October 2024.

Serbia’s real GDP grew by an estimated 3.9% in 2024 but slowed to 2% in 2025, supported by domestic demand and infrastructure projects. The National Bank of Serbia expects GDP growth to accelerate to 3.5% in 2026 and 5% in 2027, driven by domestic consumption, fixed investment and the upcoming Expo.

Despite the upbeat economic indicators, political instability and concerns over corruption have weighed on investor confidence, raising questions about the sustainability of growth. The ruling Serbian Progressive Party’s (SNS) credibility, built on promises of stability and prosperity, has been eroded in recent years amid ongoing scandals and politicisation of institutions.