on and Association Agreement with Brussels. Serbia is
also pursuing membership in the World Trade Organization.
Unemployment remains an ongoing political and economic problem. The
Republic of Montenegro severed its economy from Serbia during the
MILOSEVIC era; therefore, the formal separation of Serbia and
Montenegro in June 2006 had little real impact on either economy.
Kosovo's economy continues to transition to a market-based system
and is largely dependent on the international community and the
diaspora for financial and technical assistance. The euro and the
Serbian dinar are both accepted currencies in Kosovo. While
maintaining ultimate oversight, UNMIK continues to work with the EU
and Kosovo's local provisional government to accelerate economic
growth, lower unemployment, and attract foreign investment to help
Kosovo integrate into regional economic structures. The complexity
of Serbia and Kosovo's political and legal relationships has created
uncertainty over property rights and hindered the privatization of
state-owned assets in Kosovo. Most of Kosovo's population lives in
rural towns outside of the largest city, Pristina. Inefficient,
near-subsistence farming is common.
note: economic data for Serbia currently reflects information for
the former Serbia and Montenegro, unless otherwise noted; data for
Serbia alone will be added when available

GDP (purchasing power parity):
$44.83 billion for Serbia (including Kosovo) (2006 est.)

GDP (official exchange rate):
$19.19 billion for Serbia alone (excluding Kosovo) (2006 est.)

GDP - real growth rate:
5.9% for Serbia alone (excluding Kosovo) (2005 est.)

GDP - per capita (PPP):
$4,400 for Serbia (including Kosovo) (2005 est.)

GDP - composition by sector:
agriculture: 16.6%
industry: 25.5%
services: 57.9% (2005 est.)

Labor force:
2.961 million for Serbia (including Kosovo) (2002 est.)

Labor force - by occupation:
agriculture: 30%
industry: 46%
services: 24%
note: excluding Kosovo and Montenegro (2002)

Unemployment rate:
31.6%
note: unemployment is approximately 50% in Kosovo (2005 est.)

Population below poverty line:
30%
note: data covers the former Serbia and Montenegro (1999 est.)

Inflation rate (consumer prices):
15.5% (2005 est.)

Investment (gross fixed):
14.2% of GDP (2005 est.)

Budget:
revenues: $11.45 billion
expenditures: $11.12 billion; incl