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 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, a down-sized 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 - and the London Club of private creditors forgave $1.7 billion of debt, just over half the total owed, in July 2004. 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's economy continues to transition to a market-based system, and is largely dependent on the international community and the diaspora for financial and technical assistance. The euro and the Yugoslav dinar are both accepted currencies in Kosovo. While maintaining ultimate oversight, UNMIK continues to work with the European Union and Kosovo's local provisional government to accelerate economic growth, lower unemployment, and attract foreign investment to help Kosovo integrate into regional economic structures. The complexity of Serbia and Montenegro political relationships, slow progress in privatization, legal uncertainty over property rights, scarcity of foreign-investment and a substantial foreign trade deficit are holding back the 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 for this entire region.
GDP:
purchasing power parity - $26.27 billion (2004 est.)
GDP - real growth rate:
6.5% (2004 est.)
GDP - per capita:
purchasing power parity - $2,400 (2004 est.)
GDP - composition by sector:
agriculture: 15.5%
industry: 27.6%
services: 56.8% (2004 est.)
Labor force:
3.2 million (2004 est.)
Labor force - by occupation:
agriculture NA, industry NA, services NA
Unemployment rate:
30%
note: unemployment is approximately 50% in Kosovo (2004 est.)
Population below poverty line:
30% (1999 est.)
Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%
Inflation rate (consumer prices):
8.8% (2004 est.)
Investment (gross fixed):
14.4% of GDP (2004 est.)
Budget:
revenues: $9.773 billion
expenditures: $10.46 billion, including capital expenditures of NA (2004 est.)
Public debt:
80% 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:
31.64 billion kWh (2002)
Electricity - consumption:
32.33 billion kWh (2002)
Electricity - exports:
400 million kWh (2002)
Electricity - imports:
3.3 billion kWh (2002)
Oil - production:
15,000 bbl/day (2001 est.)
Oil - consumption:
64,000 bbl/day (2001 est.)
Oil - exports:
NA
Oil - imports:
NA
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:
$-3.008 billion (2004 est.)
Exports:
$3.245 billion f.o.b. (2004 est.)
Exports - commodities:
manufactured goods, food and live animals, raw materials
Exports - partners:
Italy 30.1%, Germany 16.6%, Austria 7.4%, Greece 7.1%, France 5.3%, Slovenia 4.2%, US 4.1% (2004)
Imports:
$9.538 billion f.o.b. (2004 est.)
Imports - commodities:
machinery and transport equipment, fuels and lubricants, manufactured goods, chemicals, food and live animals, raw materials
Imports - partners:
Germany 20.2%, Italy 18.1%, Austria 9%, Slovenia 6.1%, France 5.1%, Netherlands 4.4%, Bulgaria 4.3%, Greece 4.2% (2004)
Reserves of foreign exchange and gold:
$3.55 billion (2004 est.)
Debt - external:
$12.97 billion (2004 est.)
Economic aid - recipient:
$2 billion pledged in 2001 (disbursements to follow for several years)
Currency (code):
new Yugoslav dinar (YUM); note - in Montenegro the euro is legal tender; in Kosovo both the euro and the Yugoslav dinar are legal
Exchange rates:
new Yugoslav dinars per US dollar - 64.1915 (official rate: 65) (2002)
Fiscal year:
calendar year
