Serbia profile

Demography and Health

Serbia has about 6.59 million people in 2024 (population total 6,587,202; rank 109), with a negative net migration of roughly 8,132 people in 2024, signaling outward migration that shapes the country’s age structure and labor supply. The demographic profile features a relatively high crude death rate of 14.7 per 1,000 people (2023) and a birth rate of 9.2 per 1,000 (2023), indicating an aging population and slower natural growth. Life expectancy at birth stands at 76.2 years (2023), while under-5 mortality is 5.2 per 1,000 live births (2023), suggesting ongoing gains in child health but persistent vulnerabilities in some cohorts. Health system financing shows current health expenditure at 9.66% of GDP (2022) with government health expenditure per capita, PPP, at about $1,463 (2022) and physicians at 2.84 per 1,000 people (2021), pointing to a healthcare system that combines solid coverage with room for efficiency improvements. Serbia also addresses mental health through a notable suicide mortality rate of 15.1 per 100,000 (2021). Internet access is widespread (85.4% of the population in 2023), which supports health information access and telemedicine potential, while the overall poverty headcount resides around 20% (2021) and undernourishment is low at 2.5% (2022), illustrating mixed health determinants across urban and rural areas and economic groups. The health landscape thus reflects a society balancing gains in life expectancy and health services with challenges tied to aging, migration, and regional disparities.

Economy

Serbia’s economy combines mid-tier income with a strong orientation toward reform and knowledge-based growth. GDP per capita is about $13,524 in 2024 (current US$), and GDP per capita at PPP is roughly $31,867, signaling a higher living standard relative to nominal comparisons but still below advanced European peers. Inflation stood at 4.67% in 2024, indicating moderate price growth that businesses and households can manage with prudent policy and monetary coordination. Unemployment is 8.27% in 2023, reflecting decent labor market performance amid structural shifts and ongoing reforms. The country devotes 0.95% of GDP to research and development in 2023, ranking among the higher performers in its peer group and underscoring a policy emphasis on innovation. Serbia’s military expenditure amounts to about $2.14 billion in 2023 (rank 61), illustrating a security and defense dimension that coexists with economic diversification. Public health spending and broader social expenditure—while not deeply quantified here—are part of the fiscal framework that supports inclusive growth. High-technology exports reach about $1.36 billion (2023), and patent activity among residents stands at 138 applications (2021), signaling a budding yet still developing knowledge economy. These indicators collectively portray a country converting gradual reform into measurable productivity gains, while managing social and regional disparities as part of its growth strategy.

Trade and Investment

Serbia is highly open to trade and investment, with exports of goods and services accounting for 52.7% of GDP in 2024 and imports at 58.8% of GDP, signifying deep participation in regional and global supply chains. Foreign direct investment net inflows reach 6.07% of GDP in 2023, indicating sustained investor confidence and capital deepening in manufacturing, ICT, and services. The current account balance is negative, at -2.39% of GDP in 2023, reflecting a moderate external financing need that is manageable with ongoing FDI, remittances, and trade integration. The country’s export strengths are complemented by a relatively robust service sector and a growing high-tech segment, with high-technology exports totaling about $1.36 billion (2023) and a patent activity of 138 resident applications (2021), suggesting ongoing diversification toward knowledge-intensive activities. Serbia’s trade policy environment is supported by regulatory quality (0.138) and decent government effectiveness (0.0076), though governance challenges—such as limited control of corruption (-0.447) and weaker rule of law (-0.0745)—introduce risk factors for some investment projects. In sum, Serbia sits on a trajectory of expanding trade ties and investor interest, driven by policy reforms and integration into European markets, while needing continued improvements in governance to sustain higher-quality investment and resilience to external shocks.

Governance and Institutions

Serbia’s governance indicators reveal a landscape of mixed performance with notable vulnerabilities and some institutional gains. Political stability and absence of violence/terrorism is slightly negative (-0.0391 in 2023), signaling susceptibility to domestic or regional tensions and policy uncertainty that can affect investment decisions. Regulatory quality is modestly positive (0.138), suggesting some successful policy design and implementation in select sectors. The rule of law remains slightly negative (-0.0745), reflecting concerns about judicial independence, contract enforcement, and regulatory credibility. Control of corruption is notably weak (-0.447), highlighting persistent governance challenges that can undermine investor confidence, public trust, and the efficiency of public services. Government effectiveness is near neutral (0.0076), indicating marginal performance in policy execution. Taken together, these indicators point to an environment where incremental governance improvements are achievable and essential for sustaining broad-based growth, improving the business climate, and delivering higher-quality public services to citizens across regions.

Infrastructure and Technology

Serbia shows meaningful progress in infrastructure and technology, but notable gaps remain. The Logistics Performance Index (quality of trade and transport-related infrastructure) stands at 2.4 on a 1-to-5 scale in 2022, with a rank of 22, reflecting strides in logistics efficiency but still room for improvement in customs, transport corridors, and digitalized supply chains. Internet usage is high, with 85.4% of the population online in 2023, enabling digital services, e-government, and e-commerce growth. High-technology exports reach about $1.36 billion (2023), and resident patent applications are 138 (2021), illustrating ongoing diversification toward knowledge-intensive activities, albeit with headroom to scale up innovation ecosystems. R&D expenditure is 0.95% of GDP (2023), placing Serbia among higher-performing peers in the region, though still below global leaders. Renewable energy accounts for 27.2% of total final energy consumption (2021), signaling a constructive transition toward cleaner energy sources and a potential for greater energy security and export competitiveness. The health system also benefits from digital connectivity and infrastructure, with a strong clinical workforce indicated by 2.84 physicians per 1,000 people (2021). Domestic government health expenditure per capita, PPP, is around $1,463 (2022), reflecting substantial public investment in health services alongside private and out-of-pocket components. Overall, Serbia is building a more connected and knowledge-enabled economy, while continuing to upgrade transport, energy, and digital infrastructure to support growth and competitiveness.

Environment and Sustainability

Serbia’s environmental and resource context blends moderate stress with growing sustainable practices. Level of water stress, measured as freshwater withdrawal as a share of available resources, stands at 5.69% (2021) with a relative position of 121 in the category, indicating relatively manageable freshwater demand compared with some arid or water-scarce contexts but with potential exposure to climate variability and seasonal demands. The prevalence of undernourishment is low at 2.5% (2022), suggesting satisfactory overall food security, though poverty remains a concern with 20% of the population living below national poverty lines (2021). Renewable energy contributes 27.2% of total final energy consumption (2021), illustrating progress in diversifying energy sources and reducing carbon intensity, though further expansion could enhance energy independence and emissions outcomes. Life expectancy and mortality patterns (76.2 years; under-5 mortality 5.2 per 1,000) indicate that Serbia has achieved substantial health gains, but social determinants such as poverty and mental health (suicide rate 15.1 per 100,000 in 2021) require continued attention. The environmental dimension thus intersects with governance, investment, and regional development policies, underscoring the need for integrated strategies to strengthen resilience, resource management, and inclusive growth as Serbia advances toward a greener and more sustainable trajectory.