This Chapter examines recent performance of the FRY economy, giving attention to questions of economic growth, the balance of payments, the macro-economic policy framework, and commercial banking. A rapidly changing environment and policy mix, together with remaining weaknesses in basic data, complicate an assessment of the current economic situation in the country. Nevertheless, some fundamental problems and trends can be identified. Given the substantial amount of attention devoted to macroeconomic policy in a number of other recent reports on the FRY economy, this Assessment places particular stress on the performance of FRY firms and the barriers to, and prospects for, growth.