Balkans record mixed economic trends in Q1 2026

Bosnia and Herzegovina’s economy expanded by 2.2% year‑on‑year in the first quarter of 2026, according to the national statistics agency. Growth was driven by a strong 10.2% rise in the hospitality sector, with household consumption up 3.2%, government spending 1.8%, gross investment 1.5% and a modest 0.1% increase in exports.

Serbia posted a 3.2% year‑on‑year rise in gross domestic product for the same period, described as solid but accompanied by slower foreign‑direct investment inflows, a rise in inflation to about 3.5% and a slight dip in employment. Industrial production in May 2026 was up 0.3% YoY, led by mining (up 3.2%) and processing industries (up 1.4%), while the energy‑supply sector fell 8.6%. Retail sales, tourism and goods exports also posted modest gains, whereas imports were virtually flat.