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: negotiations between the parties, interrupted in 2018, resumed in 2020.
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 two years of 4% growth, the Serbian economy was impacted by the COVID-19 lockdown measures, including a curfew, and is expected to shrink by 4% in 2020. It is, however, expected to bounce back in 2021 (+6%). Kosovo removed restrictions on importing Serbian goods.

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 use remain central, but in 2019 an announcement was made regarding the conclusion of work on the Serbian section of the TurkStream gas pipeline from Russia, a source of considerable investment. 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. The textiles industry is still important, while timber is an old and well-established sector. The milling industry is mainly located in Vojvodina; there are also facilities for sugar production and refining.

Tertiary sector.

Serbia mainly imports raw materials (crude oil), machinery, electrical products and appliances, consumer goods and foodstuffs. In the pre-COVID period, export has grown thanks also to the contribution of the automotive industry (FCA), but the country continues to show a trade deficit.

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