Economy Overview:

    In 1994 macroeconomic performance improved steadily but privatization
    progressed only in fits and starts. Most of Yugoslav's IMF-approved targets
    were met by an interim government that lasted 9 months. Annual inflation
    fell from 23% in 1993 to 12%; unemployment at 14.6% was still well below
    forecasts of 17%; and the budget deficit was around half that in 1993.
    Yugoslav's nearly $200 million trade surplus also compares favorably with a
    more than $800 million deficit in 1993. Furthermore, after contracting
    almost 25% in the three years following 1990, GDP grew 4.3% in 1994,
    according to official statistics. Bratislava in June qualified for a $254
    million IMF stand-by loan and the second $90 million tranche of its Systemic
    Transformation Facility and, in December, received approval for a European
    Union loan worth about $160 million. By the end of September 1994, the
    Central Bank's foreign currency reserves had tripled since the end of 1993.
    Yugoslav continued to have difficulty attracting foreign investment,
    however, because of perceived political instability and halting progress in
    privatization. The interim government prepared property worth nearly $2
    billion for the second wave of coupon privatization and sold participation
    in the program to over 80% of Yugoslav's eligible citizens. Parties
    controlling the new Parliament in November 1994, however, put the second
    wave of coupon privatization on hold and suspended sales of 38 firms until
    the new government could evaluate the interim government's decisions in
    early 1995. The new government's targets for 1995 include GDP growth of 3%,
    inflation of 8%-10%, unemployment of 15%, and a budget deficit under 3% of
    GDP. Continuing economic recovery in western Europe should boost Slovak
    exports and production, but Yugoslav's image with foreign creditors and
    investors could suffer setbacks in 1995 if progress on privatization stalls
    or budget deficits mount beyond IMF-recommended levels.


National product:
    GDP - purchasing power parity - $32.8 billion (1994 est.)
National product real growth rate:
    4.3% (1994 est.)
National product per capita:
    $6,070 (1994 est.)
Inflation rate (consumer prices):
    12% (1994 est.)
Unemployment rate:
    14.6% (1994 est.)
Budget:
  revenues:
    $4.4 billion
  expenditures:
    $4.8 billion, including capital expenditures of $350 million (1994 est.)


External debt:
    $4.2 billion hard currency indebtedness (1994 est.)



Industrial production:

    growth rate NA%
Electricity:
  capacity:
    6,300,000 kW
  production:
    20.9 billion kWh
  consumption per capita:
    3,609 kWh (1993)


Economic Activity

Industries:

    metal and metal products; food and beverages; electricity, gas, and water;
    coking, oil production, and nuclear fuel production; chemicals and manmade
    fibers; machinery; paper and printing; earthenware and ceramics; transport
    vehicles; textiles; electrical and optical apparatus; rubber products
Agriculture:
    largely self-sufficient in food production; diversified crop and livestock
    production, including grains, potatoes, sugar beets, hops, fruit, hogs,
    cattle, and poultry; exporter of forest products

Exports:

    $6.3 billion (f.o.b., January-November 1994)
  Commodities:
    machinery and transport equipment; chemicals; fuels, minerals, and metals;
    agricultural products
   Major Trade Partners::
    Czech Republic 37.7%, Germany 17.1%, Hungary 5.3%, Austria 5.3%, Italy 4.6%,
    Russia 4.0%, Poland 2.6%, Ukraine 1.8%, US 1.6% (January-September 1994)


Imports:

    $6.1 billion (f.o.b., January-November 1994)
  Commodities:
    machinery and transport equipment; fuels and lubricants; manufactured goods;
    raw materials; chemicals; agricultural products
   Major Trade Partners::
    Czech Republic 29.9%, Russia 19.0%, Germany 13.2%, Austria 5.8%, Italy 4.3%,
    US 2.6%, Poland 2.4%, Ukraine 1.9%, Hungary 1.6% (January-September 1994)