Serbia: Economy Overview

28 January 2010
by Ina Dimireva -- last modified 28 January 2010

Mismanagement of the economy, an extended period of international economic sanctions, and the damage to Yugoslavia's infrastructure and industry during the NATO airstrikes in 1999 left Serbia's economy only half the size it was in 1990.

Economy Overview

After the ousting of former Federal Yugoslav President Milosevic in September 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, Yugoslavia continued to reintegrate into the international community by rejoining the World Bank (IBRD) and the European Bank for Reconstruction and Development (EBRD). Belgrade has made progress in trade liberalization and enterprise restructuring and privatization, including telecommunications and small- and medium-size firms. It has made halting progress towards EU membership despite signing a Stabilization and Association Agreement with Brussels in May 2008. Serbia is also pursuing membership in the World Trade Organization. Reforms needed to ensure the country's long-term viability have largely stalled since the onset of the global financial crisis. Serbia is grappling with fallout from crisis, which has led to a sharp drop in exports to Western Europe and a decline in manufacturing output. Unemployment and the large current account deficit remain ongoing political and economic problems. IMF conditions on Serbia constrain the use of stimulus efforts to revive the economy, while Serbia's concerns about inflation and exchange rate stability preclude the use of expansionary monetary policy. Nevertheless, the IMF projects that Serbia's economy will grow by 1.5% in 2010 after a 4% contraction in 2009 as a recovery in Western Europe takes hold.

GDP (purchasing power parity):

$77.01 billion (2009 est.)
country comparison to the world: 78
$80.73 billion (2008 est.)
$76.59 billion (2007 est.)
note: data are in 2009 US dollars

GDP (official exchange rate):

$42.39 billion (2009 est.)

GDP - real growth rate:

-4.6% (2009 est.)
country comparison to the world: 187
5.4% (2008 est.)
6.9% (2007 est.)

GDP - per capita (PPP):

$10,400 (2009 est.)
country comparison to the world: 102
$10,900 (2008 est.)
$10,300 (2007 est.)
note: data are in 2009 US dollars

GDP - composition by sector:

agriculture: 12.3%
industry: 24.2%
services: 63.5% (2007 est.)

Labor force:

2.961 million (2002 est.)
country comparison to the world: 101

Labor force - by occupation:

agriculture: 30%
industry: 46%
services: 24% (2002)

Unemployment rate:

18.8% (2007 est.)
country comparison to the world: 164

Investment (gross fixed):

20.1% of GDP (2007 est.)
country comparison to the world: 92

Budget:

revenues: $9.6 billion
expenditures: $9.8 billion (2007 est.)

Inflation rate (consumer prices):

6.8% (2007 est.)
country comparison to the world: 168

Commercial bank prime lending rate:

18.11% (31 December 2008)
country comparison to the world: 73
11.13% (31 September 2007)

Stock of domestic credit:

$17.06 billion (31 December 2008)
country comparison to the world: 64
$13.44 billion (31 December 2007)

Agriculture - products:

wheat, maize, sugar beets, sunflower, raspberries, beef, pork, milk

Industries:

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

Industrial production growth rate:

1.8% (2007 est.)
country comparison to the world: 60

Oil - production:

11,420 bbl/day (2008 est.)
country comparison to the world: 83

Natural gas - production:

650 million cu m (2008 est.)
country comparison to the world: 66

Current account balance:

$-6.889 billion (2007 est.)
country comparison to the world: 172

Exports:

$8.824 billion (2007 est.)
country comparison to the world: 84

Exports - commodities:

manufactured goods, food and live animals, machinery and transport equipment

Imports:

$18.35 billion (2007 est.)
country comparison to the world: 71

Debt - external:

$26.24 billion (2007 est.)
country comparison to the world: 61

Stock of direct foreign investment - at home:

$NA (31 December 2009 est.)
$11.95 billion (2006 est.)

Stock of direct foreign investment - abroad:

$NA

Exchange rates:

Serbian dinars (RSD) per US dollar - 54.5 (2007), 59.98 (2006)

Source: CIA - The World Factbook