EconomyMontenegro was the smallest of the six constituent republics of the former Yugoslavia. Between 1990 and the overthrow of Slobodan Milosevic in 2000, civil war followed by economic sanctions reduced the economies of Serbia and Montenegro to less than half their previous output. Much of their infrastructure and industrial capacity was destroyed. Since 2000, the economic outlook has become much brighter. The lifting of sanctions has restored access to international markets and capital. Annual economic growth since 2000 has been between 10 and 15%
Agriculture is now mainly
geared to domestic consumption. Maize, wheat, sugar beet and potatoes are the main crops. Fruit and vegetables are also important. The mining industry (which has proved more resilient than the rest of the industrial economy) produces coal, copper ores and bauxite as well as smaller amounts of iron ore, zinc, oil and natural gas. However, service industries will be the future of Montenegro’s economy. Tourism, which was the main component of the service sector, has recovered gradually after being all but wiped out and is expected to grow at 10% annually until 2016.
Although the two republics were formally united from 2003 to 2006 in the ‘State Union of Serbia and Montenegro’, they followed distinct economic policies; there was no customs union or currency alignment. Both governments, however, embarked on reform programs which saw numerous companies privatized and various parts of the two economies opened up to competition.
Next Page »
