According to the classification made by World Bank on the basis of income and region for 2006, Serbia and Montenegrohold a place as a lower middle income country under the Europe and Central Asian region. The Gross National Income of Serbia and Montenegro has recorded a marked improvement by registering $22 billion in 2004.
The economy of Serbia and Montenegro declined steadily during the period of Bosnian war in 1989. It embarked on a journey of improvement since 1995. They aspired to reach the heights achieved in 1991 but were unable to do so till the removal of Milosovic in October.
From thereon a team of economic experts have worked towards the betterment of this economy. They brought down the rate of inflation and the GDP registered a recovery of 55-60% from its lowly condition. In 2004 the GDP recorded a growth of 8.5%.
The PPP was estimated to grow at the rate of 6.5% in 2005. The Real GDP Per capita accounted for $3200.
Privatization Efforts to Improve the Economy
The efforts to privatize various sectors have fallen through. The population not at all hails the process. Moreover, international investment is taking place in the desired volume. Experts blame it on the present economic situation of Serbia and Montenegro, which does not encourage foreign investments.
Industry and Agriculture in Serbia and Montenegro
The industrial sector of Serbia and Montenegro is quite developed. They manufacture diverse products. Among them are agricultural machinery, automobiles, electrical equipment, metallurgical products, consumer goods, chemicals, pharmaceuticals, and petroleum products. Mining is also a flourishing industry in Serbia and Montenegro. The industrial sector registered a growth rate of 6.5% in 2004.
Previously the country accounted for 60% of the agricultural products. During 1999 21% of the population were employed in agriculture. The period between 1991 and 1996 witnessed a fall in agricultural production by 12%. The only relief was the viticulture sector whose production increased upto 50%. However, agricultural produce accounted for 18% of the GDP.
Export estimates of Serbia and Montenegro reveal that the country earns revenue of $5.5billion. The export takes place in the form of goods and services. The major exportable commodities are raw materials, manufactured goods, food products and live animals. Serbia and Montenegro trades with Italy, Germany, Russia, Bosnia and Herzegovina and Republic of Macedonia. The country imports lots of materials from other nations. It imports fuels and lubricants, chemicals and raw materials, transport vehicles and various other equipments. The import bill amounts to $11.5billion.
Poverty Situation in Serbia and Montenegro
10% of the population is living below poverty line in Serbia and Montenegro.
One US Dollar is equivalent to 60 Serbian Dinara.
Last Updated on : 25th June 2013