Serbian Economy: Vucic concedes defeat after decade of growth

Aleksandar Vucic admitted defeat in Sunday's snap parliamentary elections, ending his central role in Serbian politics after more than 14 years. The Serbian Progressive Party leader told supporters that his list would secure 105 seats in the 250-member parliament. The opposing Student List was projected to win between 135 and 140 seats, giving them a clear majority.

Voter turnout in the election reached its highest level in over 30 years. The political shift was driven by a student-led movement that formed after a train station canopy collapsed in Novi Sad on November 1, 2024. That disaster killed 16 people and sparked two years of protests against corruption and institutional control. Ilija Srdanovic, a professor at the Faculty of Medicine in Novi Sad, led the Student List during the campaign.

During his tenure, Serbia's economy expanded under Vucic's leadership. Official data shows unemployment dropped from 26 percent to between 8 and 9 percent. Nominal gross domestic product nearly tripled to approximately 90 billion euros. Annual foreign direct investment rose from roughly 800 million euros in 2012 to a record 5.2 billion euros in 2024. The government also constructed a network of modern motorways during this period.

Despite these macroeconomic indicators, critics argue that wage growth did not fully match rising living costs. Public debt remains a central issue in the political debate. Journalist Safeta Bisevac noted that while the party promised to fight corruption and organized crime, authorities widened their grip on institutions and media. Bisevac stated that Vucic established almost complete control over the state apparatus while fulfilling few of his initial promises.

Vucic, who served as president from 2017 until his resignation in September, had called early elections under pressure from the demonstrators. He had previously described the protesters as blockaders attempting to destabilize the country. The movement included university professors, doctors, and workers who challenged his dominance. Vucic resigned before the election but retained influence over his party and state policy until his formal concession.

The Student List pledged to depoliticize public institutions and restore citizens' rights. Political scientist Dusko Radosavljevic said the students gave a voice to the justified anger of citizens. He described the previous decade as a period of systematic pressure and the destruction of social institutions. Radosavljevic added that intelligence services spent more time monitoring political opponents than serving the public.

Vucic’s political career began in 1993 when he joined the Serbian Radical Party. He later co-founded the Serbian Progressive Party in 2008 to move closer to mainstream European politics. The party took power in 2012. Vucic served as first deputy prime minister, then prime minister, before becoming president. His term was originally set to run until 2027, but the recent election changed that trajectory. The new parliament inherits an economy with tripled GDP and deep political divisions.