In 2024, Serbia saw a significant inflow of foreign direct investments (FDI), amounting to 5.2 billion euros, a 14.2% increase compared to the previous year. The net FDI inflow was 4.6 billion euros, up by 7.9%. However, when accounting for the outflow of primary income (4.6 billion euros), the net FDI was 633.7 million euros, a decrease of 48.3% from 2023.
The structure of FDI shifted, with equity investments (including reinvested profits) rising to 79.7%, while intercompany borrowing fell to 20.3%. Equity investments are preferred as they are taxed, unlike intercompany loans, which are not.
In December 2024, Serbia’s FDI inflow surged to 627.9 million euros, a 96.1% increase from December 2023. Conversely, the net inflow from portfolio investments dropped by 45.5%, primarily due to state borrowing and Telekom Srbija issuing bonds.
A significant increase in outflows based on portfolio investments abroad was observed, rising to 899 million euros in 2024 from 134.4 million euros in 2023, mainly driven by investments from domestic commercial banks and companies.
Other investments saw a net inflow of 2.1 billion euros, a 45.7% increase, while cash and deposits showed a net outflow of 570.2 million euros. The net credit obligations of the state and companies rose significantly, while trade credits and advances decreased by 1.08 billion euros.
