Serbia Economy 2008

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 a 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. In November 2001, the Paris Club agreed to reschedule the country's $4.5 billion public debt and wrote off 66% of the debt. In July 2004, the London Club of private creditors forgave $1.7 billion of debt just over half the total owed. Belgrade has made only minimal progress in restructuring and privatizing its holdings in major sectors of the economy, including energy and telecommunications. It has made halting progress towards EU membership and is currently pursuing a Stabilization and Association Agreement with Brussels. Serbia is also pursuing membership in the World Trade Organization. Unemployment remains an ongoing political and economic problem. The Republic of Montenegro severed its economy from Serbia during the MILOSEVIC era; therefore, the formal separation of Serbia and Montenegro in June 2006 had little real impact on either economy. 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 Serbian dinar are both accepted currencies in Kosovo. While maintaining ultimate oversight, UNMIK continues to work with the EU 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 Kosovo's political and legal relationships has created uncertainty over property rights and hindered the privatization of state-owned assets in Kosovo. Most of Kosovo's population lives in rural towns outside of the largest city, Pristina. Inefficient, near-subsistence farming is common.
note: economic data for Serbia currently reflects information for the former Serbia and Montenegro, unless otherwise noted; data for Serbia alone will be added when available

GDP (purchasing power parity):
$56.89 billion
note: data for Serbia includes Kosovo (2007 est.)

GDP (official exchange rate):
$41 billion for Serbia alone (excluding Kosovo) (2007 est.)

GDP - real growth rate:
5.9% for Serbia alone (excluding Kosovo) (2005 est.)

GDP - per capita (PPP):
$7,700 for Serbia (including Kosovo) (2007 est.)

GDP - composition by sector:
agriculture: 12.3%
industry: 24.2%
services: 63.5% (2007 est.)

Labor force:
2.961 million for Serbia (including Kosovo) (2002 est.)

Labor force - by occupation:
agriculture: 30%
industry: 46%
services: 24%
note: excluding Kosovo and Montenegro (2002)

Unemployment rate:
18.8%
note: unemployment is approximately 50% in Kosovo (2007 est.)

Population below poverty line:
30%
note: data covers the former Serbia and Montenegro (1999 est.)

Distribution of family income - Gini index:
30 (2003)

Inflation rate (consumer prices):
8.9% (2007 est.)

Investment (gross fixed):
20.1% of GDP (2007 est.)

Budget:
revenues: $17.34 billion
expenditures: $17.54 billion
note: figures are for Serbia and Montenegro; Serbian Statistical Office indicates that for 2006 budget, Serbia will have revenues of $7.08 billion (2007 est.)

Public debt:
40% of GDP (2007 est.)

Agriculture - products:
wheat, maize, sugar beets, sunflower, beef, pork, milk

Industries:
sugar, agricultural machinery, electrical and communication equipment, paper and pulp, lead, transportation equipment

Industrial production growth rate:
1.4% (2006 est.)

Electricity - production:
33.87 billion kWh (excludes Kosovo and Montenegro) (2004)

Electricity - consumption:
NA

Electricity - exports:
12.05 billion kWh (excludes Kosovo; exported to Montenegro) (2004)

Electricity - imports:
11.23 billion kWh (excluding Kosovo; imports from Montenegro) (2004)

Oil - production:
14,660 bbl/day (2003)

Oil - consumption:
85,000 bbl/day (2003 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
77.5 million bbl (1 January 2006 est.)

natural gas - production:
650 million cu m (2005 est.)

natural gas - consumption:
2.55 billion cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
2.1 billion cu m
note: includes Montenegro (2004 est.)

natural gas - proved reserves:
46.17 billion cu m (1 January 2006)

Current account balance:
-$2.451 billion (2005 est.)

Exports:
$3.49 billion (excluding Kosovo and Montenegro) (2007 est.)

Exports - commodities:
manufactured goods, food and live animals, machinery and transport equipment

Imports:
$10.58 billion (excluding Kosovo and Montenegro) (2005 est.)

Economic aid - recipient:
$2 billion pledged in 2001 to Serbia and Montenegro (disbursements to follow over several years; aid pledged by EU and US has been placed on hold because of lack of cooperation by Serbia in handing over General Ratko MLADIC to the criminal court in The Hague)

Reserves of foreign exchange and gold:
$14 billion (2007 est.)

Debt - external:
$28.24 billion (including Montenegro) (2007 est.)

Stock of direct foreign investment - at home:
$11.95 billion (2006 est.)

Stock of direct foreign investment - abroad:
$NA

Market value of publicly traded shares:
$5.409 billion (2005)

Currency (code):
Serbian Dinar (RSD)