The economy of Serbia and Montenegro entered a prolonged decline in 1989. Exacerbated by the economic embargo imposed during the Bosnian war, the Federal Republic of Yugoslavia (FRY) economy's downward spiral showed no real sign of recovery until 1995. 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 on 5 October 2000. A vigorous team of economic reformers has worked to tame inflation (non-energy inflation is less than 9% in 2002, down from over 120% two years earlier) and rationalize the SCG economy. GDP, although only half of its 1997 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. 1989 (MCMLXXXIX) is a common year starting on Sunday of the Gregorian calendar. ... Official language Serbian written in Cyrillic alphabet1 Capital Belgrade2 President3 Svetozar Marović Area  - Total  - % water Ranked 105th 102,350 km² 0. ... 1995 (MCMXCV) was a common year starting on Sunday of the Gregorian calendar. ... October 5 is the 278th day of the year (279th in Leap years). ... This article is about the year 2000. ... 2002 (MMII) is a common year starting on Tuesday of the Gregorian calendar. ... Serbia and Montenegro  â€“ Serbia    â€“ Kosovo and Metohia        (UN administration)    â€“ Vojvodina  â€“ Montenegro Official language Serbian language written in Cyrillic alphabet Capital Belgrade President Svetozar Marović Area  â€“ Total  â€“ % water Ranked 105th  102,350 km²  0. ... 1997 (MCMXCVII) is a common year starting on Wednesday of the Gregorian calendar. ...

Currency Problems

The FRY's monetary unit, the dinar, remained volatile throughout Milošević's rule. Alarmed FRY officials took several steps to tighten monetary policy in 1998, including ruling out a devaluation in the near term, increasing reserve requirements, and issuing bonds. During this period, Montenegro rejected the dinar and adopted the Deutsche Mark (now replaced by the Euro) as its official currency. As 1999 began, the damage control operation had succeeded in returning the exchange rate to reasonable levels. However, it was not until 2002, after intense macroeconomic reform measures, that the dinar became convertible--a first since the Bretton Woods Agreements laid out the post-World War II international exchange rate regime. For exchange rates, see here. ... A 25,000 Iraqi dinar note printed after the fall of Saddam Hussein. ... Monetary policy is the process of managing money supply to achieve specific goals—such as constraining inflation, achieving full employment or economic growth. ... Devaluation is reduction in the value of a currency. ... In finance, a bond is a debt security, that is the issuer owes the holders a debt and is obliged to pay the principal and interest (the coupon), together with other obligations under the term of the issue, such as the obligation to give certain information. ... Serbia and Montenegro  â€“ Serbia    â€“ Kosovo and Metohia        (UN administration)    â€“ Vojvodina  â€“ Montenegro Official language Serbian Capital Podgorica Former Royal Capital Cetinje President Filip Vujanović Prime Minister Milo Đukanović Area  â€“ Total  â€“ % water  13,812 km²  n/a Population  â€“ Total (2003)  â€“ Density  616,258  48. ... The Deutsche Mark (DM, DEM) was the official currency of West and, from 1990, unified Germany. ... The euro (symbol: €; banking code: EUR) is the currency of twelve European Union member states: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain, collectively known as the Eurozone. ... 1999 (MCMXCIX) is a common year starting on Friday, and was designated the International Year of Older Persons by the United Nations. ... Macroeconomics is the study of the entire economy in terms of the total amount of goods and services produced, total income earned, the level of employment of productive resources, and the general behavior of prices. ... Wikipedia does not have an article with this exact name. ... Combatants Allied Powers Axis Powers Commanders {{{commander1}}} {{{commander2}}} Strength {{{strength1}}} {{{strength2}}} Casualties 17 million military deaths 7 million military deaths World War II, also known as the Second World War, was a mid-20th century conflict that engulfed much of the globe and is accepted as the largest and deadliest...

Stabilization 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 overly centralized and controlled from Belgrade. Furthermore, international investment is still lagging in Serbia 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. Privatization (sometimes privatisation, denationalization, or, especially in India, disinvestment) is the process of transferring property, from public ownership to private ownership and/or transferring the management of a service or activity from the government to the private sector. ... Centralization is the process by which the activities of an organization, particularly those regarding decision-making, become concentrated within a particular location and/or group. ... [[Image:|Location of Belgrade]] Mayor Nenad Bogdanović Area 359. ... Investment or investing is a term with several closely-related meanings in finance and economics. ...

Statistics

Gross Domestic Product

Purchasing power parity - $25.98 billion, 27.7 Billion predicted for 2005 (2004 est.)
Real growth rate: 8.5% (2004 est.), 6.5% (2005 est)
Per capita: purchasing power parity - $2,900 (2004 est.), $3200 (2005 est.)
Composition by sector: In economics, purchasing power parity (PPP) is a number used to compare the standard of living of two countries. ...

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 pharmaceuticals

Industrial 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 2002

Natural 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 13%, Germany 11%, 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:

New Yugoslav dinar (YUM). Note - in Montenegro the euro is legal tender; in Kosovo both the euro and the Yugoslav dinar are legal (2002)
Code: YUM
Exchange rates: new Yugoslav dinars per US dollar - official rate: 60 (2004); Fiscal year: calendar year

See also

• Economy of Europe
• Economy of Montenegro
• Economy of Serbia
• Serbian Dinar
• Euro
• Central Bank of Montenegro
• National Bank of Serbia