Economy Of Serbia and Montenegro

Economy overview MILOSEVIC-era mismanagement of the economy, an extended period of economic sanctions, and the damage to Yugoslavia's infrastructure and industry during the NATO airstrikes in 1999 have left the economy only half the size it was in 1990. After the ousting of former Federal Yugoslav President MILOSEVIC in October 2000, the Democratic Opposition of Serbia (DOS) coalition government implemented stabilization measures and embarked on an aggressive market reform program. After renewing its membership in the IMF in December 2000, Yugoslavia continued to reintegrate into the international community by rejoining the World Bank (IBRD) and the European Bank for Reconstruction and Development (EBRD). A World Bank-European Commission sponsored Donors' Conference held in June 2001 raised $1.3 billion for economic restructuring. An agreement rescheduling the country's $4.5 billion Paris Club government debts was concluded in November 2001; it wrote off 66% of the debt. The smaller republic of Montenegro severed its economy from federal control and from Serbia during the MILOSEVIC era and continues to maintain its own central bank, uses the euro instead of the Yugoslav dinar as official currency, collects customs tariffs, and manages its own budget. Kosovo, while technically still part of the Federal Republic of Yugoslavia (now Serbia and Montenegro) according to United Nations Security Council Resolution 1244, is largely autonomous under United Nations Interim Administration Mission in Kosovo (UNMIK) and is greatly dependent on the international community and the diaspora for financial and technical assistance. The euro and the Yugoslav dinar are official currencies, and UNMIK collects taxes and manages the budget. The complexity of Serbia and Montenegro political relationships, slow progress in privatization, legal uncertainty over property rights, and scarcity of foreign-investment are holding back Serbia and Montenegro's economy. Arrangements with the IMF, especially requirements for fiscal discipline, are an important element in policy formation. Severe unemployment remains a key political economic problem.
 
GDP purchasing power parity - $23.89 billion (2004 est.)
 
GDP - real growth rate 1.5% (2004 est.)
 
GDP - per capita purchasing power parity - $2,200 (2004 est.)
 
GDP - composition by sector
agriculture: 15.2%
industry: 28.2%
services: 56.5% (2004 est.)
 
Investment gross fixed 14.3% of GDP (2004 est.)
 
Population below poverty line 30% (1999 est.)
 
Household income or consumption by percentage share
lowest 10%: NA
highest 10%: NA
 
Distribution of family income - Gini index  
Inflation rate consumer prices 11.2% (2004 est.)
 
Labor force 2.93 million (2004 est.)
 
Labor force by occupation agriculture NA, industry NA, services NA
 
Unemployment rate 34.5% (2004 est.)
 
Budget
revenues: $8.668 billion
expenditures: $9.633 billion, including capital expenditures of NA (2004 est.)
 
Public debt 123.2% of GDP (2004 est.)
 
Agriculture products cereals, fruits, vegetables, tobacco, olives; cattle, sheep, goats
 
Industries machine building (aircraft, trucks, and automobiles; tanks and weapons; electrical equipment; agricultural machinery); metallurgy (steel, aluminum, copper, lead, zinc, chromium, antimony, bismuth, cadmium); mining (coal, bauxite, nonferrous ore, iron ore, limestone); consumer goods (textiles, footwear, foodstuffs, appliances); electronics, petroleum products, chemicals, and pharmaceuticals
 
Industrial production growth rate 1.7% (2002 est.)
 
Electricity production 31.71 billion kWh (2001)
 
Electricity production by source
fossil fuel: 62.9%
hydro: 37.1%
other: 0% (2001)
nuclear: 0%
 
Electricity consumption 32.37 billion kWh (2001)
 
Electricity exports 446 million kWh (2001)
 
Electricity imports 3.33 billion kWh (2001)
 
Oil production 15,000 bbl/day (2001 est.)
 
Oil consumption 64,000 bbl/day (2001 est.)
 
Oil exports NA (2001)
 
Oil imports NA (2001)
 
Oil proved reserves 38.75 million bbl (1 January 2002)
 
Natural gas production 602 million cu m (2001 est.)
 
Natural gas consumption 602 million cu m (2001 est.)
 
Natural gas exports 0 cu m (2001 est.)
 
Natural gas imports 0 cu m (2001 est.)
 
Natural gas proved reserves 24.07 billion cu m (1 January 2002)
 
Current account balance $-2.416 billion (2004 est.)
 
Exports $2.667 billion f.o.b. (2004 est.)
 
Exports commodities manufactured goods, food and live animals, raw materials
 
Exports partners Italy 31.6%, Germany 17.5%, Austria 6.2%, France 6%, Greece 5.4%, Slovenia 4.1%, Hungary 4% (2003)
 
Imports $7.144 billion f.o.b. (2003 est.)
 
Imports commodities machinery and transport equipment, fuels and lubricants, manufactured goods, chemicals, food and live animals, raw materials
 
Imports partners Germany 18.8%, Italy 16.3%, Austria 8.1%, Slovenia 6.6%, Hungary 5.8%, France 4.8%, Bulgaria 4.6%, Greece 4.4% (2003)
 
Reserves of foreign exchange gold $3.7 billion (2004 est.)
 
Debt external $14.01 billion (2004 est.)
 
Economic aid recipient $2 billion pledged in 2001 (disbursements to follow for several years)
 
Currency in Serbia the Serbian dinar (CSD) is legal tender, but the euro (EUR) is the de facto currency; in Montenegro and Kosovo the euro is legal tender. (2004)
 
Currency code CSD, EUR
 
Exchange rates new Yugoslav dinars per US dollar - official rate: 65 (2002)
 
Fiscal year calendar year

 

 

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This information was reproduced in part from the CIA World Fact book.

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