Things are looking up a bit for Serbia’s economy.
The 1990s were a lost decade for Serbia. GDP declined sharply in the first half of the decade. A modest recovery in 1995-8 was wiped out by the NATO bombing. Per capita income in 2000 was just about where it had been in 1989… but the average person was much worse off, because income distribution had changed drastically, with a small caste of the rich and well connected now owning most of the country’s wealth.
The fall of Milosevic in October 2000 brought in a new government, but the economy was very slow to respond. GDP grew by only about 3.5% per year between 2001 and 2004, foreign investment was slow to show interest, and the income distribution stayed as bad as ever. I lived in Serbia during those years, and the general impression was one of dashed hopes. The assassination of Prime Minister Djindjic in March 2003 didn’t help matters.
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