EconomySerbia was the largest 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 its economy to less than half its previous output. Much of its 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 Serbia’s economy. Tourism, which was the main component of the service sector, has recovered gradually after being all but wiped out; Serbia received 2 million visitors in 2002.
Although the two republics of Serbia and Montenegro were formally united between 2003 and 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 have seen numerous companies privatized and various parts of the two economies opened up to competition.
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