- Economy of Serbia and Montenegro
Serbia and Montenegro was a confederated union which existed between 2003 and 2006. The two republics initially formed the Federal Republic of Yugoslavia in 1992. The economy ofSerbia and Montenegro entered a prolonged decline in1989 . Exacerbated by the economicembargo imposed during the Bosnian war, theFederal Republic of Yugoslavia (FRY) economy's downward spiral showed no real sign of recovery until1995 . GDP was nowhere near its 1991 level, but the NATO bombing in 1999 of the basic infrastructure of the country and many factories, as well as a renewed embargo caused a further huge drop in GDP in relation to the 1991 level. The first sign of an economic recovery occurred in 2001 after the removal of Milošević on5 October 2000 . A vigorous team of economic reformers has worked to tameinflation (non-energy inflation is less than 9% in2002 , down from over 120% two years earlier) and rationalize the SCG economy. GDP, although only half of its1997 level, is projected to increase steadily in the near future. As of January 2005 GDP has recovered to 55-60% of its 1990 level, due to GDP growth of 8.5% in 2004.Currency Problems
The FRY's
monetary unit , thedinar , remained volatile throughout Milošević's rule. Alarmed FRY officials took several steps to tightenmonetary policy in 1998, including ruling out a devaluation in the near term, increasingreserve requirements , and issuing bonds. During this period,Montenegro rejected the dinar and adopted theDeutsche Mark (now replaced by theeuro ) as its officialcurrency . As1999 began, the damage control operation had succeeded in returning the exchange rate to reasonable levels. However, it was not until 2002, after intensemacroeconomic reform measures, that the dinar became convertible--a first since the Bretton Woods Agreements laid out the post-World War II internationalexchange rate regime.tabilization Efforts
Privatization efforts have not succeeded as well as macroeconomic reform. The process of privatization is not popular among workers of large socially owned companies, and many citizens appear to believe the tendering process is overlycentralized and controlled fromBelgrade . Furthermore, internationalinvestment is still lagging inSerbia and Montenegro (SaM), as a result of both domestic and international investment climates. Managers tend to blame the dearth of interest on the current negative business climate in SaM.tatistics
Gross Domestic Product
Purchasing power parity - $25.98 billion (2004 est.)<, $27.5 Billion predicted for 2005 br>Real growth rate: 8.5% (2004 est.), 6.5% (2005 est)
Real GDP Per capita - nominal: $2900 (2004 est.), $3200 (2005 est.)
Composition by sector::Agriculture: 15.2%:Industry: 28.2%:Services: 56.6% (2004 est.)Economic Situation
Population below poverty line: 10%
Inflation rate (consumer prices): 12-13% (2004 est.)
Labor force: 3,596,282 (2005 est.)
Budget::Revenues: $9.773 billion :expenditures: $10.460 billion (2004 est.)Industrial Situation
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 pharmaceuticalsIndustrial production growth rate: 6.5% (2004 est.)
Electricity
Production: 31,710 GWh (2001)
Production by source (2001)::Fossil fuel: 62.9%:Hydro: 37.1%:Nuclear: 0%:Other: 0%Consumption: 32,370 GWh (2001)
Exports: 446 GWh (2001)
Imports: 3,330 GWh (2001)Oil
Production: 15,000 barrel/day (2,400 m³/d) 2001
Consumption: 64,000 barrel/day (10,200 m³/d) 2001
Exports: NA (2001)
Imports: NA (2001)
Proved reserves: 38.75 million barrel (6,161,000 m³) January 2002Natural Gas
Proved reserves: 24.07 km³ (January 2002 est.)
Agricultural Produce
Cereals, fruits, vegetables, tobacco, olives; cattle, sheep, goats.
Exports
Total: $5.5 billion f.o.b. (2004 est.)(goods and services)
Commodities: manufactured goods, food and live animals, raw materials
Partners: Bosnia and Herzegovina 19%, Italy 12%, Germany 12%, Republic of Macedonia 8%, Russia 4% (2004)Imports
Total: $11.5 billion f.o.b. (2004 est.)(goods and services)
Commodities: machinery and transport equipment, fuels and lubricants, manufactured goods, chemicals, food and live animals, raw materials
Partners: Russia 13%, Germany 13%, Italy 9%, China 5%, USA 4% (2004)Debt
External: $12.6 billion (2004 est.)
"-As a percentage of GDP:" 55-60% (2004 est.)
Economic aid - recipient: $2 billion pledged in 2001 (disbursements to follow for several years)Currency
Serbian dinar (CSD). Note - in Montenegro theeuro is legal tender; inKosovo both the euro and the Yugoslav dinar are legal (2002)
Code: YUM
Exchange rates: Serbian dinara per US dollar - official rate: 60 (2004); Fiscal year: calendar yearee also
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Economy of Europe
*Economy of the Socialist Federal Republic of Yugoslavia
*Economy of Montenegro
*Economy of Serbia
*Serbian dinar
*Euro
*Central Bank of Montenegro
*National Bank of Serbia
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