he Former
Yugoslav Republic of Macedonia as the poorest republic in the old
Yugoslav federation. Although agriculture has been almost all in
private hands, farms have been small and inefficient, and the republic
traditionally has been a net importer of food. Industry has been
greatly overstaffed, one reflection of the socialist economic
structure of Yugoslavia. TITO had pushed the development of military
industries in the republic with the result that Bosnia hosted a large
share of Yugoslavia's defense plants. The bitter interethnic warfare
in Bosnia caused production to plummet by 80% from 1990 to 1995,
unemployment to soar, and human misery to multiply. With an uneasy
peace in place, output recovered in 1996-98 at high percentage rates
on a low base; but output growth slowed appreciably in 1999, and GDP
remains far below the 1990 level. Economic data are of limited use
because, although both entities issue figures, national-level
statistics are not available. Moreover, official data do not capture
the large share of activity that occurs on the black market. In 1999,
the convertible mark - the national currency introduced in 1998 -
gained wider acceptance, and the Central Bank of Bosnia and
Herzegovina dramatically increased its reserve holdings.
Implementation of privatization, however, faltered in both areas.
Banking reform is also lagging. The country receives substantial
amounts of reconstruction assistance and humanitarian aid from the
international community but will have to prepare for an era of
declining assistance.

GDP: purchasing power parity - $6.2 billion (1999 est.)

GDP - real growth rate: 5% (1999 est.)

GDP - per capita: purchasing power parity - $1,770 (1999 est.)

GDP - composition by sector:
agriculture: 19%
industry: 23%
services: 58% (1996 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): 5% (1997 est.)

Labor force: 1.026 million

Labor force - by occupation: agriculture NA%, industry NA%, services
NA%

Unemployment rate: 35%-40% (1999 est.)

Budget:
revenues: $NA
expenditures: $1.6 billion, including capital expenditures of $NA
(2000 est.)

Industries: steel, coal, iron ore, lead, zinc, manganese, bauxite,
vehicle assembly, textiles, tobacco products, wooden furniture, tank
and aircraft assembly, domestic appliances, oil refining (much of
capacity damaged or sh