ctuation band as investors
worried that the current account deficit, which reached nearly 8% of
GDP in 1996, would become unsustainable. After expending $3 billion in
vain to support the currency, the central bank let it float. The
growing current account imbalance reflected a surge in domestic demand
and poor export performance, as wage increases outpaced productivity.
The government was forced to introduce two austerity packages later in
the spring which cut government spending by 2.5% of GDP. Growth
dropped to 0.3% in 1997, -2.3% in 1998, and -0.5% in 1999. The basic
transition problem continues to be too much direct and indirect
government influence on the privatized economy. The government
established a restructuring agency in 1999 and launched a
revitalization program - to spur the sale of firms to foreign
companies. Key priorities include accelerating legislative convergence
with EU norms, restructuring enterprises, and privatizing banks and
utilities. The economy, fueled by increased export growth and
investment, is expected to recover in 2000.

GDP: purchasing power parity - $120.8 billion (1999 est.)

GDP - real growth rate: -0.5% (1999 est.)

GDP - per capita: purchasing power parity - $11,700 (1999 est.)

GDP - composition by sector:
agriculture: 5%
industry: 42%
services: 53% (1999 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: 4.6%
highest 10%: 23.5% (1993)

Inflation rate (consumer prices): 2.5% (1999 est.)

Labor force: 5.203 million (1999 est.)

Labor force - by occupation: industry 32%, agriculture 5.6%,
construction 8.7%, transport and communications 6.9%, services 46.8%
(1997 est.)

Unemployment rate: 9% (1999 est.)

Budget:
revenues: $16.4 billion
expenditures: $17.3 billion, including capital expenditures of $NA
(1999)

Industries: fuels, ferrous metallurgy, machinery and equipment, coal,
motor vehicles, glass, armaments

Industrial production growth rate: -4% (1999 est.)

Electricity - production: 61.466 billion kWh (1998)

Electricity - production by source:
fossil fuel: 75.54%
hydro: 2.55%
nuclear: 20.37%
other: 1.54% (1998)

Electricity - consumption: 54.733 billion kWh (1998)

Electricity - exports: 10.8 billion kWh (1998)

Electricity - imports: 8.37 billion kWh (1998)

Agriculture - products: grains, potatoes, sugar beets, hops, fruit;
pigs, cattle, poultry; forest products

Exports: $26.9 billion