Serbia and Montenegro Economy 1997

Economy - overview The swift collapse of the Yugoslav federation in 1991 has been followedby highly destructive warfare, the destabilization of republic boundaries,and the breakup of important interrepublic trade flows. Output in Serbia andMontenegro 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 amongthe republics accentuated this interdependence, as did the communist practiceof 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 industrialplants lost suppliers and markets, and the destruction of physical assetsin the fighting all have contributed to the economic difficulties of the republics.One singular factor in the economic situation of Serbia and Montenegro isthe continuation in office of a communist government that is primarily interestedin political and military mastery, not economic reform. Hyperinflation endedwith the establishment of a new currency unit in June 1993; prices were relativelystable in 1995. Reliable statistics are hard to come by; the GDP estimateis extremely rough. The economic boom anticipated by the government afterthe suspension of UN sanctions in December 1995 failed to materialize in 1996and early 1997, exacerbating the regime's financial problems.

GDP purchasing power parity - $21 billion (1995 est.)

GDP - real growth rate 6% (1995 est.)

GDP - per capita purchasing power parity - $1,900 (1995 est.)

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

Inflation rate - consumer price index 79% (1995 est.)

Labor force
total : 2.178 million
by occupation: industry 41%, services 35%, trade and tourism 12%, transportation andcommunication 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 NA%

Electricity - capacity 11.78 million kW (1994)

Electricity - production 33.77 billion kWh (1994)

Electricity - consumption per capita 2,798 kWh (1995 est.)

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

Exports
total value : $1.4 billion (1995 est.)
commodities: manufactured goods, food and live animals, raw materials
partners: Russia, Italy, Germany

Imports
total value: $2.4 billion (1995 est.)
commodities: machinery and transport equipment, fuels and lubricants, manufacturedgoods, 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: 4.9 (September 1996)1.5 (early 1995); black market rate: 2 to 3 (early 1995)

Fiscal year calendar year

NOTE: The information regarding Serbia and Montenegro on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Serbia and Montenegro Economy 1997 information contained here. All suggestions for corrections of any errors about Serbia and Montenegro Economy 1997 should be addressed to the CIA.