Serbia’s economic model, built on foreign direct investment (FDI), reached a historic milestone in 2024.
The country saw a record $5.8 billion in FDI inflows, surpassing the previous high set in 2011. Yet, amid this success, concerns grow over the sustainability of such growth.
Despite record profits from foreign-owned businesses, the country is facing an unprecedented level of capital outflows. In 2024, $3.23 billion was repatriated to foreign investors, marking a new high, while reinvestment remained at $1.72 billion.
The dilemma is stark: while foreign investment props up growth, much of the wealth generated is leaving the country.
The $34 billion in profits from FDI since 2008, with $20 billion repatriated, reveals a troubling trend.
As European automotive industries—key to Serbia’s FDI—struggle, the model may be nearing its limits.
The question now is whether Serbia’s economic future can thrive beyond this cycle of investment and repatriation.
