contributions by Abe Selassie (IMF) and Daniela Gressani (World Bank); comments and background material by the IMF and World Bank country teams on Albania, Bosnia and Herzegovina, Bulgaria, Croatia, FYR Macedonia, Romania, and FR Yugoslavia; and comments by the European Commission, the European Bank for Reconstruction and Development, the Organization for Economic Cooperation and Development, and the Stability Pact. IMF and World Bank staffs acknowledge, in particular, the helpful comments and insights provided by the authorities of the countries of the region. Research
I. Introduction Before the Kosovo conflict, the countries of South East Europe (SEE)—Albania, Bosnia and Herzegovina, Bulgaria, Croatia, FYR Macedonia, Romania, and FR Yugoslavia 1 —were at different stages of economic development, integration with the global market, and transition to a market economy. The economic performance of the group as a whole lagged behind that of Central Europe and the Baltics. The reasons for this development varied from country to country, but ethnic conflict, political instability, and a timid and fitful approach to structural
.3 Germany 1.4 0.5 2.9 15.9 Italy 0.6 0.8 5.8 0.7 United Kingdom 0.5 -0.4 0.2 -0.2 Countries of former Yugoslavia 38.7 58.5 119.7 116.1 Bosnia and Herzegovina 4.6 7.5 20.4 41.5 Croatia 25.8 40.6 82.4 35.6 FR Yugoslavia 1.0 2.1 11.6 28.9 FYR Macedonia 7.3 8.3 5.3 10.0 CEFTA 2/ -2.2 10.1 21.1 24.4 Of which: Czech Republic -0.2 5.7 2.5 0.4 Poland -1.0 3.4 13.2 4.9 Romania 0.2 0.3 4.7 7.8 Countries of former Soviet Union 2.5 5.2 9.3 11.5 Of which: Russian Federation 2.4 5.1 8.2 10.4 Other countries 5.9 13.3 5.7 -17.9 Of which: Liberia 6.3 2.7 2.9 -1.8 United States -2.1 0.6 0
In months of merchandise imports 1.2 2.4 2.9 3.7 External debt 13/ (In millions of U.S. dollars) … 3,361 3,620 4,076 (In percent of GDP) … 156 109 91 Debt service (in percent of exports of goods and nonfactor services) … 118 63 31 Memorandum items: Exchange rates (period average) BiH dinar per deutsche mark 14/ … 100 100 100 FR Yugoslav dinar per deutsche mark 15/ 1.2 2.4 3.5 3.9 Croatia