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Business Profile
Economy: Economic sanctions imposed against Yugoslavia throughout much of the 1990s had a considerable effect on the economy despite extensive smuggling – much of it organised by the recently deposed Milosevic government. The effects were most marked in industry and certain service industries. In the industrial sector, the mining industry, which has proved more resilient than many, produced coal, copper ores and bauxite. Smaller amounts of iron ore, zinc, oil and natural gas were also produced. The principal manufacturing products were vehicles, machinery, cement and steel; these were severely affected by sanctions through a loss of export markets and the inability to import key components essential to keeping the factories in operation. Agriculture is now mainly geared to producing subsistence crops for internal consumption. Maize, wheat, sugar beet and potatoes are the main crops. Fruit and vegetables are also important. Tourism, the main service industry, collapsed with the onset of the civil war, and has yet to recover.
Political isolation and the Government’s uncertain economic strategies led to a serious economic decline: in the early 1990s, output fell by 45 per cent between 1990 and 1995. Few figures are available for subsequent years, but it is likely that the economy suffered a similar contraction over the rest of the decade, accompanied by growing unemployment. NATO’s intervention destroyed much of Yugoslavia’s infrastructure and its major industrial plants. With the installation of the Kostunica government in September 2000, economic prospects became much brighter as sanctions were lifted and Yugoslavia recovered access to international markets and capital. Good progress is being made in restoring the economy: GDP grew by 15 per cent in 2000 and the demise of Milosevic also unlocked a substantial aid package, worth about US$3 billion, from the EU. The structure of the restored, and as of 2003 renamed, Serbian and Montenegrin economy will be very different from the pre-war version as service industries supplant the heavy industrial operations which were the core of the old Yugoslav economy.
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; fax: (11) 324 8754; e-mail: info@pkj.co.yu; website: www.pkj.co.yu); or Serbia Chamber of Commerce and Industry, ul. Generala Zdanova 13, 11000 Belgrade (tel: (11) 323 3955 or 323 4467; fax: (11) 323 0949; e-mail: centar@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).
Copyright © 2003 Columbus Publishing Ltd.
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