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Country Guide > Europe > Serbia and Montenegro | |
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Business Profile Economy Serbia & Montenegro were respectively the largest and 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 their economies 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 per cent. 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 the Union’s economy. Tourism, which was the main component of the service sector, has recovered gradually after being all but wiped out; the latest official figures record that Serbia received two million visitors in 2002. Although the two republics have been formally united since February 2003 in the ‘State Union of Serbia and Montenegro’, they follow distinct economic policies; there is no customs union or currency alignment. Both governments have, however, embarked on reform programmes which have seen numerous companies privatised and various parts of the two economies opened up to competition. The process has drawn the broad approval of the IMF and the EU, which has supplied a $3 billion aid package to assist the reconstruction process. The policy divisions between Serbia & Montenegro are likely to cause difficulties in the near future, especially as regards the EU, which is firmly opposed to any future schisms in the Balkans. Despite that, Serbia and Montenegro hope to be able to join the group – which currently includes Romania, Bulgaria and Croatia – aiming for full EU membership in 2007. Business As with Croatia, but unlike Slovenia, things go very slowly or not at all on account of the cumbersome bureaucracy and general socio-economic collapse. Communication, however, is not a major problem, as English is popular as a second language. Office hours: Mon-Fri 0700/0800-1500/1600. Commercial Information The EU ban on new investment in Serbia and Montenegro has recently been lifted. The following organisations should be able to offer advice: Yugoslav Chamber of Commerce and Industry, Terazije 23, 11000 Belgrade (tel: (11) 324 8222 or 8123; fax: (11) 324 8754; e-mail: info@pkj.co.yu); or Serbia Chamber of Commerce and Industry, Resavska 13-15, 11000 Belgrade (tel: (11) 330 0900; fax: (11) 323 0949; e-mail: kabinet@pks.co.yu; website: www.pks.co.yu); or Chamber of Economy of Montenegro, Foreign Economic Relations Sector, ul. Novaka Miloseva 11, 81000 Podgorica (tel: (81) 230 545 or 230 714; fax: (81) 230 943; website: www.pkcg.org). |