During the 1950s and 1960s the Yugoslav economy grew rapidly, at roughly 6.6 per cent per annum between 1955 and 1971. In the 1970s growth decelerated, giving way by the early 1980s to secular decline.1 Performance since 1978 looks particularly dismal when expressed in terms of output per worker, because employment expanded between 1978 and 1988 by 2.4 per cent per year.