Page 107 - bne IntelliNews Southeastern Europe Outlook 2025

grew by 2.8% in the first nine months of 2024, driven by robust domestic demand, a recovery in exports and significant investments across key industries.
The energy sector, while temporarily impacted in 2024 by an overhaul at the Pancevo Refinery, saw compensatory growth in electricity generation and mining, particularly from the Chinese-operated copper production at Bor.
The cosmetics sector is experiencing unprecedented growth, with exports reaching €36.8mn in the first five months of 2024 – an 8% year-on-year increase. Driven by strong demand in regional and Russian markets, this trend is expected to sustain, contributing to Serbia’s export diversification.
5.10.4 Major Sectors & Companies
Serbia’s economic growth in 2025 will be underpinned by balanced
contributions from manufacturing and the services sector.
Manufacturing will benefit from sustained FDI inflows, while services, particularly information and communications technology (ICT) and transport, are expected to assume greater importance in the economy. These two sectors have shown significant progress in recent years, positioning themselves as drivers of future growth.
The manufacturing sector, a cornerstone of Serbia's economy, continues to expand, supported by investments in the automotive and electrical machinery industries.
In 2024, Serbia made headlines as the first country in the Balkans to launch EV production lines, with the opening of the Stellantis factory in Kragujevac. However, uncertainty surrounding EV demand in Europe has raised concerns about potential delays in the production of the Grande Panda model.
In addition to Stellantis, other international companies are bolstering Serbia’s manufacturing base. Chinese tire manufacturer Linglong has started operations at its $1bn facility in Zrenjanin, capable of producing 13mn tires annually, while Chinese automotive parts maker SHAC is establishing its first European plant in Novi Sad.
The mining sector is experiencing a surge in activity due to significant mineral discoveries. Australian company Strickland Metals has reported new findings at its Rogozna project, while Canadian firms Electrum Discovery and Mundoro are advancing copper and gold exploration projects in the Timok region.
Serbia’s substantial lithium reserves also came back into focus in 2024, as the government re-approved the controversial $2.4bn Jadar lithium mining project led by Anglo-Australian mining giant Rio Tinto. If realised, the Jadar project has the potential to meet 90% of Europe’s
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