Mother Earth Travel > Country Index > Yugoslavia > Map Economy History |
| Economy - overview: The swift collapse of the Yugoslav
federation in 1991 was followed by highly destructive warfare, the
destabilization of republic boundaries, and the breakup of important
interrepublic trade flows. Output in Yugoslavia 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 among
the republics accentuated this interdependence, as did the communist
practice of 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 industrial plants lost suppliers and markets, and the
destruction of physical assets in the fighting all have contributed to the
economic difficulties of the republics. Hyperinflation ended with the
establishment of a new currency unit in June 1993; prices were relatively
stable from 1995 through 1997, but inflationary pressures resurged in
1998. Reliable statistics continue to be hard to come by, and the GDP
estimate is extremely rough. The economic boom anticipated by the
government after the suspension of UN sanctions in December 1995 has
failed to materialize. Government mismanagement of the economy is largely
to blame, but the damage to Yugoslavia's infrastructure and industry by
the NATO bombing during the war in Kosovo have added to problems. All
sanctions now have been lifted. Yugoslavia is in the first stage of
economic reform. Severe electricity shortages are chronic, the result of
lack of investment by former regimes, depleted hydropower reservoirs due
to extended drought, and lack of funds. GDP growth in 2000 was perhaps
15%, which made up for a large part of the 20% decline of 1999. GDP: purchasing power parity -
$24.2 billion (2000 est.) SOURCE: The World Factbook |
Mother Earth Travel > Country Index > Yugoslavia > Map Economy History