the US in
November 2000 after temporarily ceasing its operations at the
beginning of the March 1999 NATO bombing campaign

Diplomatic representation from the US: chief of mission: Ambassador
(vacant); Charge d'Affaires William MONTGOMERY

embassy: Kneza Milosa 30, 11000 Belgrade

note: the US reestablished relations with Yugoslavia 17 November
2000; the embassy is not scheduled to open for business until
extensive renovations have been completed

Flag description: three equal horizontal bands of blue (top), white,
and red

Yugoslavia Economy

Economy - overview: The swift collapse of the Yugoslav federation in
1991 was followed by highly destructive warfare, the destabilization
of republic boundaries, and the breakup of important interrepublic
trade flows. Output in Yugoslavia dropped by half in 1992-93. Like
the other former Yugoslav republics, it had depended on its sister
republics for large amounts of energy and manufactures. Wide
differences in climate, mineral resources, and levels of technology
among the republics accentuated this interdependence, as did the
communist practice of concentrating much industrial output in a
small number of giant plants. The breakup of many of the trade
links, the sharp drop in output as industrial plants lost suppliers
and markets, and the destruction of physical assets in the fighting
all have contributed to the economic difficulties of the republics.
Hyperinflation ended with the establishment of a new currency unit
in June 1993; prices were relatively stable from 1995 through 1997,
but inflationary pressures resurged in 1998. Reliable statistics
continue to be hard to come by, and the GDP estimate is extremely
rough. The economic boom anticipated by the government after the
suspension of UN sanctions in December 1995 has failed to
materialize. Government mismanagement of the economy is largely to
blame, but the damage to Yugoslavia's infrastructure and industry by
the NATO bombing during the war in Kosovo have added to problems.
All sanctions now have been lifted. Yugoslavia is in the first stage
of economic reform. Severe electricity shortages are chronic, the
result of lack of investment by former regimes, depleted hydropower
reservoirs due to extended drought, and lack of funds. GDP growth in
2000 was perhaps 15%, which made up for a large part of the 20%
decline of 1999.

GDP: purchasing power parity - $24.2 billion (2000 est.)

GDP - real growth rate: