Economy - overview The swift collapse of the Yugoslav federation in 1991 has been followed by highly destructive warfare, the destabilization of republic boundaries, and the breakup of important interrepublic trade flows. Output in Serbia and Montenegro dropped by half in 1992-93. Like the other former Yugoslav republics, it had depended on its sister republics for large amounts of energy and manufactures. Wide differences in climate, mineral resources, and levels of technology among the republics accentuated this interdependence, as did the communist practice of concentrating much industrial output in a small number of giant plants. The breakup of many of the trade links, the sharp drop in output as industrial plants lost suppliers and markets, and the destruction of physical assets in the fighting all have contributed to the economic difficulties of the republics. One singular factor in the economic situation of Serbia is the continuation in office of a communist government that is primarily interested in political and military mastery, not economic reform. Hyperinflation ended with the establishment of a new currency unit in June 1993; prices have been relatively stable since 1995. Reliable statistics continue to be hard to come by, and the GDP estimate is extremely rough. The economic boom anticipated by the government after the suspension of UN sanctions in December 1995 has failed to materialize. Until the government cooperates on such matters as human rights and war criminals, it will lack full support from international financial institutions.

GDP purchasing power parity - $24.3 billion (1997 est.)

GDP - real growth rate 7% (1997 est.)

GDP - per capita purchasing power parity - $2,280 (1997 est.)

GDP - composition by sector
agriculture: 25%
industry: 50%
services: 25% (1994 est.)

Inflation rate - consumer price index 7% (1997)

Labor force
total: 2.178 million
by occupation: industry 41%, services 35%, trade and tourism 12%, transportation and communication 7%, agriculture 5% (1994)

Unemployment rate more than 35% (1995 est.)

Budget
revenues: $NA
expenditures: $NA, including capital expenditures of $NA

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 8% (1997 est.)

Electricity - capacity 11.779 million kW (1995)

Electricity - production 33.4 billion kWh (1995)

Electricity - consumption per capita 3,009 kWh (1995)

Agriculture - products cereals, fruits, vegetables, tobacco, olives; cattle, sheep, goats

Exports
total value: $2.8 billion (1996 est.)
commodities: manufactured goods, food and live animals, raw materials
partners: Russia, Italy, Germany

Imports
total value: $6.2 billion (1996 est.)
commodities: machinery and transport equipment, fuels and lubricants, manufactured goods, chemicals, food and live animals, raw materials
partners: Germany, Italy, Russia

Debt - external $11.2 billion (1995 est.)

Economic aid
recipient: ODA, $NA

Currency 1 Yugoslav New Dinar (YD) = 100 paras

Exchange rates Yugoslav New Dinars (YD) per US $1 - official rate: 5.85 (December 1997), 5.02 (September 1996), 1.5 (early 1995); black market rate: 8.9 (December 1997), 2 to 3 (early 1995)

Fiscal year calendar year

NOTE: The information regarding Serbia and Montenegro on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Serbia and Montenegro Economy 1998 information contained here. All suggestions for corrections of any errors about Serbia and Montenegro Economy 1998 should be addressed to the CIA.