The use of the name Montenegro began in the 15th century when the Crnojevic dynasty began to rule the Serbian principality of Zeta; over subsequent centuries Montenegro was able to maintain its independence from the Ottoman Empire.

From the 16th to 19th centuries, Montenegro became a theocracy ruled by a series of bishop princes; in 1852, it was transformed into a secular principality.

After World War I, Montenegro was absorbed by the Kingdom of Serbs, Croats, and Slovenes, which became the Kingdom of Yugoslavia in 1929; at the conclusion of World War II, it became a constituent republic of the Socialist Federal Republic of Yugoslavia. When the latter dissolved in 1992, Montenegro federated with Serbia, first as the Federal Republic of Yugoslavia and, after 2003, in a looser union of Serbia and Montenegro.

In May 2006, Montenegro invoked its right under the Constitutional Charter of Serbia and Montenegro to hold a referendum on independence from the state union. The vote for severing ties with Serbia exceeded 55% - the threshold set by the EU - allowing Montenegro to formally declare its independence on 3 June 2006.

Source: CIA World Fact Book

Population: 684,736 (July 2007 est.)

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Population growth rate: -1% (2007 est.)

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Birth rate: 11.18 births/1,000 population (2007 est.)

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Death rate: 8.39 deaths/1,000 population (2007 est.)

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Nationality: noun: Montenegrin(s) adjective: Montenegrin

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Ethnic groups: Montenegrin 43%, Serbian 32%, Bosniak 8%, Albanian 5%, other (Muslims, Croats, Roma (Gypsy)) 12%

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Religions: Orthodox, Muslim, Roman Catholic

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Languages: Serbian (official; Ijekavian dialect), Bosnian, Albanian, Croatian

The republic of Montenegro severed its economy from federal control and from Serbia during the MILOSEVIC era and maintained its own central bank, used the euro instead of the Yugoslav dinar as official currency, collected customs tariffs, and managed its own budget. The dissolution of the loose political union between Serbia and Montenegro in 2006 led to separate membership in several international financial institutions, such as the European Bank for Reconstruction and Development. On 18 January 2007, Montenegro joined the World Bank and IMF. Montenegro is pursuing its own membership in the World Trade Organization as well as negotiating a Stabilization and Association agreement with the European Union in anticipation of eventual membership. Severe unemployment remains a key political and economic problem for this entire region. Montenegro has privatized its large aluminum complex - the dominant industry - as well as most of its financial sector, and has begun to attract foreign direct investment in the tourism sector.

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GDP (purchasing power parity): $3.443 billion (2006 est.)

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GDP (official exchange rate): $2.27 billion (2006 est.)

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GDP - real growth rate: NA%

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GDP - per capita (PPP): $3,800 (2005 est.)

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GDP - composition by sector: agriculture: NA% industry: NA% services: NA%

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Labor force: 259,100 (2004)

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Labor force - by occupation: agriculture: 2% industry: 30% services: 68% (2004 est.)

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Unemployment rate: 27.7% (2005)

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Population below poverty line: 12.2% (2003)

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Inflation rate (consumer prices): 3.4% (2004)

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Investment (gross fixed): NA% of GDP

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Budget: revenues: NA expenditures: NA

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Public debt: NA% of GDP

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Agriculture - products: grains, tobacco, potatoes, citrus fruits, olives, grapes; sheepherding; commercial fishing negligible

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Industries: steelmaking, aluminum, agricultural processing, consumer goods, tourism

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Electricity - production: 2.864 billion kWh (2005 est.)

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Electricity - consumption: 18.6 million kWh (2004)

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Oil - production: 0 bbl/day (2004)

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Oil - consumption: 450 bbl/day (2004)

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Natural gas - consumption: NA cu m

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Current account balance: $NA

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Exports: $171.3 million (2003)

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Exports - partners: Switzerland 83.9%, Italy 6.1%, Bosnia and Herzegovina 1.3% (2006)

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Imports: $601.7 million (2003)

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Imports - partners: Greece 10.2%, Italy 10.2%, Germany 9.6%, Bosnia and Herzegovina 9.2% (2006)

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Reserves of foreign exchange and gold: NA

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Debt - external: $NA

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Economic aid - recipient: $NA

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Currency (code): euro (EUR)

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Exchange rates: euros per US dollar - 0.7964 (2006), 0.8041 (2005), 0.8089 (2004), 0.886 (2003), 1.0626 (2002)

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Fiscal year: calendar year