Macedonia (FYROM): Economic and Political Outline
Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline
Macedonia is the poorest of the former Yugoslavian republics and it was not spared from the global economic crisis. Many companies have closed their doors or have reduced their number of employees, while the country lacks liquid assets. The diaspora has reduced its financial transfers into the country, and the citizens have been withdrawing their savings in Denars (MKD) fearing the devaluation of their national currency. In 2009, the country entered into a period of recession: drop in production and exports, budgetary deficit explosion, scarcity of FDI, etc.
The industrial infrastructures inherited from Yugoslavia have profited of very few investments. Even though the country has a skilled and competitive labor force, job opportunities are insufficient. The official unemployment rate is more than 35%. Inflation, which was under control during the last few years, has remained at a rate higher than 8% in 2008. Macedonia has a consistent unofficial economy which represents about 35% of its GDP.
The central bank estimates that the country should start its economic revival in 2011, with a growth of around 3% and a steady inflation rate of 3%.
| Main Indicators | 2009 | 2010 | 2011 | 2012 (e) | 2013 (e) |
| GDP (billions USD) | 9.34 | 9.21e | 10.32 | 11.05 | 11.74 |
| GDP (Constant Prices, Annual % Change) | -0.9 | 1.8e | 3.0e | 3.7 | 4.2 |
| GDP per Capita (USD) | 4,550e | 4,483 | 5,012e | 5,355 | 5,682 |
| General Government Gross Debt (in % of GDP) | 23.8 | 24.6 | 26.3 | 28.2 | 27.4 |
| Inflation Rate (%) | -0.8 | 1.5e | 4.4 | 2.0 | 2.0 |
| Unemployment Rate (% of the Labor Force) | 32.2 | 32.2 | 32.2 | 32.2 | 32.2 |
| Current Account (billions USD) | -0.63 | -0.25 | -0.57 | -0.73 | -0.67 |
| Current Account (in % of GDP) | -6.7 | -2.8 | -5.5e | -5.7 | - |
Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data
Note: (e) Estimated Data
Macedonia has, in its majority, an agricultural economy. The agricultural sector represents 12% of its GDP and employs 20% of its active population. It mainly produces rice, cotton, tobacco and fruits. Sheep and goat breeding is equally important. There are a few deposits of iron, copper and lead in the country.
The industrial sector includes chemical products, steel, machinery and textiles. The textile sector constitutes the main industry of the country, notably the leather industry. Both, the manufacturing and the mining sectors contribute about 30% to the GDP.
The tertiary sector represents about 60% of the GDP and employs 50% of the active population. The main income sources come from transport, telecommunications and energy production.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
| Employment By Sector (in % of Total Employment) | 19.7 | 31.3 | 48.9 |
| Value Added (in % of GDP) | 11.3 | 36.3 | 52.3 |
| Value Added (Annual % Change) | 6.5 | 7.5 | -5.8 |
Source: World Bank - Last Available Data.
| Monetary Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| Macedonian Denar (MKD) - Average Annual Exchange Rate For 1 USD | 48.80 | 44.73 | 41.87 | 44.10 | 46.49 |
Source: World Bank - Last Available Data.
Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation
See the Country Risk Analysis Provided By Ducroire.
Macedonia is an open economy, highly integrated into the international trade, with a total trade-to-GDP ratio of 107%. It became a member of WTO (World Trade Organization) in April 2003. Following a cooperation agreement with the EU, Macedonia signed a Stabilization and Association Agreement in April 2001, which concedes Macedonia duty-free access to European markets. Macedonia’s top three export partners are: Serbia-Montenegro, Germany and Greece. Macedonia mainly exports clothing, textiles, iron, steel, footwear and tobacco. Its top three suppliers are: Germany, Greece and Russia. It mainly imports hydrocarbons, iron and steel, machinery, and food products.
Due to the effects of the crisis, the country's trade deficit became deeper. As a matter of fact, the money transfers from the Macedonians living abroad partly financed this imbalance since these transfers were greatly reduced due to the economic situation.
| Foreign Trade Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| Imports of Goods (million USD) | 3,763 | 5,281 | 6,883 | 5,043 | 5,451 |
| Exports of Goods (million USD) | 2,401 | 3,398 | 3,991 | 2,692 | 3,302 |
| Imports of Services (million USD) | 545 | 746 | 961 | 789 | 800 |
| Exports of Services (million USD) | 581 | 799 | 992 | 845 | 887 |
| Imports of Goods and Services (Annual % Change) | 11.0 | 17.4 | -1.0 | -10.6 | - |
| Exports of Goods and Services (Annual % Change) | 8.4 | 14.3 | -9.2 | -12.8 | - |
| Imports of Goods and Services (in % of GDP) | 66.8 | 70.2 | 76.1 | 66.9 | - |
| Exports of Goods and Services (in % of GDP) | 48.1 | 51.9 | 50.9 | 44.0 | - |
| Trade Balance (million USD) | -1,261 | -1,639 | -2,590 | -2,157 | -1,945 |
| Trade Balance (Including Service) (million USD) | -1,232 | -1,604 | -2,579 | -2,117 | -1,867 |
| Foreign Trade (in % of GDP) | 114.9 | 122.0 | 127.0 | 110.9 | - |
Source: WTO - World Trade Organization ; World Bank , Last Available Data
| Main Customers (% of Exports) |
2009 |
| Serbia | 24.2% |
| Germany | 16.7% |
| Greece | 10.8% |
| Italy | 8.1% |
| Bulgaria | 8.1% |
| See More Countries | 32.1% |
| Main Suppliers (% of Imports) |
2009 |
| Germany | 10.3% |
| Russia | 9.8% |
| Greece | 8.7% |
| Serbia | 8.1% |
| Italy | 7.2% |
| See More Countries | 56.0% |
Source: Comtrade, Last Available Data
Source: Comtrade, Last Available Data
The executive power is formed by the president, elected by popular vote for a five-year term, and the First Minister. The President can be reelected only once. He appoints his First Minister who is in charge of forming the government.
Source: Worldwide Press Freedom Index 2010, Reporters Without Borders
Map of freedom 2010
Source: Freedom House
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Last Updates: January 2012