The Federal Republic of Yugoslavia (which became the Confederation of Serbia and Montenegro in 2003) came into being on 27 April 1992 after the dissolution of Yugoslavia (which included Slovenia, Croatia, Bosnia-Herzegovina and Macedonia, apart from Serbia and Montenegro).
Serbia adopted its current borders following the proclamation of independence of Montenegro (3 June 2006), which had been seeking secession since 2000, approved by an agreement of 2002. Kosovo’s current situation is different, however: having proclaimed its independence on 17 February 2008, it has been recognized by the USA and many other nations but not by the UN. With EU mediation, an agreement was signed between Kosovo and Serbia on 19 April 2013, which – it is hoped – will lead to normalised relations. In 2012, Serbia was granted the candidate country status for EU membership, but the signing of a legally binding agreement with Kosovo remains a necessary condition.
The President of the Republic is elected by direct suffrage for five years. The Prime Minister has to have the support of the National Assembly, which is made up of 250 members elected by direct suffrage for a four-year term.

Economic situation.
After growing 4% for the first time in 10 years, the economy remains strong despite slowing down slightly, owing in part to the 100% tariffs imposed by Kosovo on Serbian exports. Domestic consumption remains strong, while public spending has increased.

Primary sector.
The most important cereal crops are maize and wheat. Fruit trees are widely grown, in particular plums. Wine production is also widespread. Amongst industrial-scale products it is worth mentioning tobacco, hempseed, sunflower seeds and linseed. Livestock farming mainly concerns pig farming, followed in order of importance by sheep, cattle and poultry. Beekeeping is also fairly important.

Secondary sector.
Coal extraction and consumption remain central in terms of energy, but in 2019, work began on the Serbian stretch of the TurkStream gas pipeline by Gastrans, which 51% of is controlled by Gazprom. Oil refineries (mostly imported from Russia) are based in Pančevo and Novi Sad. There are hydroelectric power stations in the Iron Gates dam (Đerdap), on the Danube, managed with Romania, while a wind farm was opened in Alibunar. An agreement has also been signed with Russia regarding nuclear energy for civic purposes. A new combined cycle thermal power station is being constructed in Pančevo.
Metal-working plants produce both refined and foundry copper, lead, zinc and nickel. The chemical industry is based at Šabac and Bor (sulfuric acid). In the manufacturing industry, the automobile sector is important (production at the FCA plant in Kragujevac), as is the production of machinery for agriculture and factories, machine tools and oil and mining equipment. Niš is the centre of the electronics industry, while the textiles industry is important at Vranje, Prokuplje, Pirot, Paraćin, Loznica and Leskovac. Timber is an old and well-established industry in Serbia. The milling industry is important, with the most mills being found in Vojvodina; there are also sugar production and refining facilities.

Tertiary sector.

Serbia mainly imports raw materials (crude oil), machinery, electrical products and appliances, consumer goods and foodstuffs. Export has grown thanks also to the contribution of the automotive industry (FCA), but the country continues to show less than favourable commercial growth.

Main exports (M US$ - 2017) electrical and electronic equipment 2 132, iron and steel 1 221, machinery and home appliances 1 137, cars 1 058, plastics 839, fruit and vegetables 773, apparel and accessories 668, tyres 611, refined copper 579, furniture and accessories 526, paper 428