FYROM is the poorest of the former Yugoslavian republics. After a period of transition, the economy experienced more continuous growth between 2004 and 2008 (5% on average annually), driven by domestic consumption and exports (especially metals and textile products). The country experienced a recession in 2009 (-0.9% of GDP) but a moderate growth has been back since then. In 2013, growth reached 2.2% (in comparison to 2% in 2012), with forecast at 2.5% for 2014.
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 was more than 28.8% in 2013 (against 31.2% in 2012). Inflation is under control (2.8% in 2013). FYROM has a considerable unofficial economy which represents about 35% of its GDP. Public account deficits are worsening since 2012.
The need for international recognition and the continuing uncertainty at both regional and European levels prompted the authorities to seek IMF assistance. In January 2011, the country became the first to receive a Precautionary Credit Line (PCL) for a total of EUR 476 million over two years, due to the stability of its macroeconomic fundamentals: limited budget deficit, targeting exchange rates, contained inflation, low public debt and bank stability). FYROM has also been a target site for European (IPA) and international funding (World Bank, EBRD).
The main concern for 2014 is the persistence of the budget deficit, which is likely to decrease due to higher imports contained by modest growth and a tight fiscal policy.
WTO member since March 2003, the country has, since December 2005, been the official candidate to EU accession. The negotiation process is however blocked by its dispute with Greece over the name of the country.
|Main Indicators||2011||2012||2013||2014||2015 (e)|
|GDP (billions USD)||10.56||9.59||10.21||10.92||11.83|
|GDP (Constant Prices, Annual % Change)||2.8||-0.4||2.9||3.4e||3.6|
|GDP per Capita (USD)||5,122||4,638||4||5,262||5,688|
|General Government Gross Debt (in % of GDP)||27.9||33.4||35.9e||36.3||37.5|
|Inflation Rate (%)||3.9||3.3||2.8||1.0e||1.5|
|Unemployment Rate (% of the Labor Force)||31.4||31.3||30.0||29.0||28.0|
|Current Account (billions USD)||-0.27||-0.29||-0.20||-0.50||-0.67|
|Current Account (in % of GDP)||-2.5||-3.0||-1.9e||-4.6||-5.7|
Source: IMF - World Economic Outlook Database , Last Available Data
Note: (e) Estimated Data
FYROM has, in its majority, an agricultural economy. The agricultural sector represents 11.1% 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 have contributed 27.1% to the GDP in 2013.
The tertiary sector represents 61.8% of the GDP and employs 58% 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)||17.3||29.9||52.8|
|Value Added (in % of GDP)||10.4||26.2||63.4|
|Value Added (Annual % Change)||0.5||10.2||-0.2|
Source: World Bank - Last Available Data.
|FYROM Denar (MKD) - Average Annual Exchange Rate For 1 USD||44.10||46.49||44.23||47.89||46.40|
Source: World Bank - Last Available Data.
The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
FYROM is an open economy, highly integrated into the international trade, with a total trade-to-GDP ratio of over 100%. It became a member of WTO (World Trade Organization) in April 2003. Following a cooperation agreement with the EU, FYROM signed a Stabilization and Association Agreement in April 2001, which concedes the country duty-free access to European markets. Lastly, since 2006 the country is also a member of the Central European Free Trade Agreement (CEFTA), generally considered as the antechamber of the EU.
The EU is the first trade partner of the country. Its main customers in 2013 have been Serbia, Germany, but also Italy, Bulgaria and Kosovo. FYROM main exports are clothing, textiles, iron, steel, (these 4 sectors representing 40% of export in 2013) but also shoes and tobacco.
Its main suppliers are Germany, Russia, Greece, Serbia and Italy. FYROM mainly imports hydrocarbons, iron and steel, machinery, and food.
Due to the effects of the crisis, the country's trade deficit became deeper with a slow down in export but also because the money transfers from the population living abroad - which partly financed this imbalance - were greatly reduced.
|Foreign Trade Indicators||2009||2010||2011||2012||2013|
|Imports of Goods (million USD)||5,043||5,474||7,007||6,511||6,600|
|Exports of Goods (million USD)||2,692||3,351||4,455||4,002||4,267|
|Imports of Services (million USD)||789||817||937||960||1,015|
|Exports of Services (million USD)||845||887||1,096||1,046||1,157|
|Imports of Goods and Services (Annual % Change)||-14.3||9.5||14.1||4.2||-2.1|
|Exports of Goods and Services (Annual % Change)||-15.8||23.6||11.3||0.0||4.5|
|Imports of Goods and Services (in % of GDP)||61.0||65.3||74.5||76.3||72.8|
|Exports of Goods and Services (in % of GDP)||39.2||46.6||54.9||53.6||53.9|
|Trade Balance (million USD)||-2,422||-2,032||-2,642||-2,584||-2,468|
|Trade Balance (Including Service) (million USD)||-2,137||-1,857||-2,140||-2,193||-1,987|
|Foreign Trade (in % of GDP)||100.2||111.8||129.3||129.9||126.7|
Source: WTO - World Trade Organization ; World Bank , Last Available Data
(% of Exports)
|See More Countries||32.2%|
(% of Imports)
|See More Countries||53.0%|
Source: Comtrade, Last Available Data
|- bn USD of products exported in 2013|
|Reaction initiators, reaction accelerators and...Reaction initiators, reaction accelerators and catalytic preparations, n.e.s. (excl. rubber accelerators)||15.0%|
|Centrifuges, incl. centrifugal dryers (excl. those...Centrifuges, incl. centrifugal dryers (excl. those for isotope separation); filtering or purifying machinery and apparatus, for liquids or gases; parts thereof (excl. artificial kidneys)||6.3%|
|Women's or girls' suits, ensembles, jackets,...Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (excl. knitted or crocheted, wind-jackets and similar articles, slips, petticoats and panties, track suits, ski suits and swimwear)||3.7%|
|Unmanufactured tobacco; tobacco refuseUnmanufactured tobacco; tobacco refuse||3.6%|
|See More Products||61.5%|
|- bn USD of products imported in 2013|
|Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals||10.1%|
|Platinum, incl. palladium, rhodium, iridium,...Platinum, incl. palladium, rhodium, iridium, osmium and ruthenium, unwrought or in semi-manufactured forms, or in powder form||7.9%|
|Flat-rolled products of iron or non-alloy steel,...Flat-rolled products of iron or non-alloy steel, of a width >= 600 mm, hot-rolled, not clad, plated or coated||2.6%|
|Electrical energyElectrical energy||2.6%|
|Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702)||2.1%|
|See More Products||74.8%|
Source: Comtrade, Last Available Data
|- bn USD of services exported in 2012|
|Road transportRoad transport||25.28%|
|Air transportAir transport||2.44%|
|Rail transportRail transport||1.66%|
|Sea transportSea transport||0.82%|
|Miscellaneous business,...Miscellaneous business, professional, and technical services||16.28%|
|Architectural, engineering,...Architectural, engineering, and other technical services||4.66%|
|Legal, accounting, management...Legal, accounting, management consulting, and public relations||4.38%|
|Accounting, auditing,...Accounting, auditing, bookkeeping, and tax consulting services||4.38%|
|Other business servicesOther business services||3.31%|
|Advertising, market research,...Advertising, market research, and public opinion polling||3.29%|
|Research and developmentResearch and development||0.63%|
|Agricultural, mining, and...Agricultural, mining, and on-site processing services||0.01%|
|Merchanting and other trade-related...Merchanting and other trade-related services||6.48%|
|Other trade-related servicesOther trade-related services||1.73%|
|Operational leasing servicesOperational leasing services||0.19%|
|Personal travelPersonal travel||21.94%|
|Education-related expenditureEducation-related expenditure||0.45%|
|Health-related expenditureHealth-related expenditure||0.31%|
|Telecommunications servicesTelecommunications services||6.88%|
|Postal and courier servicesPostal and courier services||0.21%|
|Construction abroadConstruction abroad||3.07%|
|Construction in the compiling...Construction in the compiling economy||2.43%|
|Other personal, cultural, and...Other personal, cultural, and recreational services||1.39%|
|Audiovisual and related servicesAudiovisual and related services||0.50%|
|Other direct insuranceOther direct insurance||0.59%|
|- bn USD of services imported in 2012|
|Road transportRoad transport||13.28%|
|Sea transportSea transport||5.79%|
|Air transportAir transport||5.07%|
|Rail transportRail transport||3.60%|
|Miscellaneous business,...Miscellaneous business, professional, and technical services||25.24%|
|Legal, accounting, management...Legal, accounting, management consulting, and public relations||12.31%|
|Accounting, auditing,...Accounting, auditing, bookkeeping, and tax consulting services||12.31%|
|Architectural, engineering,...Architectural, engineering, and other technical services||7.29%|
|Advertising, market research,...Advertising, market research, and public opinion polling||3.43%|
|Other business servicesOther business services||1.60%|
|Research and developmentResearch and development||0.57%|
|Agricultural, mining, and...Agricultural, mining, and on-site processing services||0.05%|
|Merchanting and other trade-related...Merchanting and other trade-related services||1.56%|
|Other trade-related servicesOther trade-related services||1.56%|
|Operational leasing servicesOperational leasing services||0.36%|
|Personal travelPersonal travel||8.73%|
|Education-related expenditureEducation-related expenditure||0.52%|
|Health-related expenditureHealth-related expenditure||0.46%|
|Business travelBusiness travel||1.96%|
|Construction in the compiling...Construction in the compiling economy||4.01%|
|Telecommunications servicesTelecommunications services||3.02%|
|Postal and courier servicesPostal and courier services||0.26%|
|Other direct insuranceOther direct insurance||0.70%|
|Freight insuranceFreight insurance||0.52%|
|Audiovisual and related servicesAudiovisual and related services||1.68%|
|Other personal, cultural, and...Other personal, cultural, and recreational services||0.96%|
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.
The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
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