German firms in Serbia: about 80,000 jobs
More than 900 German companies employ about 80,000 workers in Serbia, with wages a third above average and trade exceeding 10 billion euros, even as foreign investment inflows slow in 2026.
- More than 900 German companies employ about 80,000 workers in Serbia.
- Wages at German firms run roughly a third above the national average.
- Trade with Germany exceeds 10 billion euros a year.
- Germany sends Serbia more than 1.2 billion euros in remittances annually, about a quarter of all inflows from abroad.
More than 900 German companies employ about 80,000 workers in Serbia, and their trade with the home economy tops 10 billion euros a year. Germany is the single largest source of foreign direct investment in the Serbian economy, and that weight shows up in both wages and export figures.
Wages at German firms in Serbia are on average about a third higher than the domestic average. The gap comes from the structure of the work: a large share of capital flows into the automotive sector, electronics, wiring harnesses and machine components, where productivity and export margins sit above the local norm. Those industries also demand skilled labor, which pulls up training and starting pay.
Beyond direct investment, the German economy is also a channel for remittances. Germany sends Serbia more than 1.2 billion euros in personal transfers each year, about a quarter of all remittances from abroad. That money does not enter export statistics, but it sustains household spending and foreign-currency inflows, especially in smaller towns where emigration runs higher.
How stable is the inflow in 2026?
The employment and trade figures describe a snapshot, not necessarily a trend. The flow of new foreign direct investment is slowing in 2026, a consequence of a weaker investment climate inside Germany itself and industry caution in the face of energy and geopolitical risks. When the parent investor trims capital spending at home, it trims it in export destinations too, and Serbia is no exception.
This does not mean companies already present are pulling out, but it changes the nature of growth: instead of new greenfield projects, the focus shifts to expanding existing plants and retaining staff. For workers that usually means steady pay, but slower growth in the number of new jobs than in the years of strong inflows.
What are local governments offering investors?
To offset the slowdown, Serbia increasingly pitches the potential of individual local governments to investors, among them Sid and Zrenjanin. The logic is straightforward: towns with available industrial zones, transport links and a labor pool compete for plants that would otherwise land in neighboring countries in the region.
Public investment fits into the same picture. The 2026 budget earmarks about 740 billion dinars, or roughly 6.7 percent of gross domestic product, for infrastructure projects. Roads, the energy grid and industrial zones are exactly what a manufacturing investor weighs before choosing a site, so state spending on infrastructure is directly tied to the ability to attract new capital.
The question for the coming quarters is not whether German companies remain the largest employer among foreign investors, because they do, but whether the slowdown in inflows turns those 80,000 jobs into a plateau or the base for a new growth cycle. What do you think, can local zones like Sid and Zrenjanin replace large greenfield investments?
