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flag Macedonia (FYROM) Macedonia (FYROM): Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

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 2009201020112012 (e)2013 (e)
GDP (billions USD) 9.349.21e10.3211.0511.74
GDP (Constant Prices, Annual % Change) -0.91.8e3.0e3.74.2
GDP per Capita (USD) 4,550e4,4835,012e5,3555,682
General Government Gross Debt (in % of GDP) 23.824.626.328.227.4
Inflation Rate (%) -0.81.5e4.42.02.0
Unemployment Rate (% of the Labor Force) 32.232.232.232.232.2
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

Main Sectors of Industry

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 20062007200820092010
Macedonian Denar (MKD) - Average Annual Exchange Rate For 1 USD 48.8044.7341.8744.1046.49

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Macedonia on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
66.0/100
Position:
Moderately free
World Rank:
51/179
Regional Rank:
22/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

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 20062007200820092010
Imports of Goods (million USD) 3,7635,2816,8835,0435,451
Exports of Goods (million USD) 2,4013,3983,9912,6923,302
Imports of Services (million USD) 545746961789800
Exports of Services (million USD) 581799992845887
Imports of Goods and Services (Annual % Change) 11.017.4-1.0-10.6-
Exports of Goods and Services (Annual % Change) 8.414.3-9.2-12.8-
Imports of Goods and Services (in % of GDP) 66.870.276.166.9-
Exports of Goods and Services (in % of GDP) 48.151.950.944.0-
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) 114.9122.0127.0110.9-

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

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

 

Main Products

Main Exports
(% of Exports)
2009
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) 5.3%
Women's or girls' blouses, shirts and...Women's or girls' blouses, shirts and shirt-blouses (excl. knitted or crocheted and vests) 4.2%
Men's or boys' suits, ensembles, jackets, blazers,...Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (excl. knitted or crocheted, wind-jackets and similar articles, separate waistcoats, track suits, ski suits and swimwear) 3.4%
Men's or boys' shirts (excl. knitted or crocheted,...Men's or boys' shirts (excl. knitted or crocheted, nightshirts, singlets and other vests) 3.4%
Unmanufactured tobacco; tobacco refuseUnmanufactured tobacco; tobacco refuse 3.3%
See More Products 80.5%
Main Imports
(% of Imports)
2009
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) 3.4%
Electrical energyElectrical energy 2.4%
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 2.2%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 2.2%
Automatic data processing machines and units...Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s. 1.5%
See More Products 88.4%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of Finance
Ministry of Justice
Ministry of Economy
Ministry of Transportation and Communications
Ministry of Agriculture
Ministry of Education and Science
Ministry of Labor and Social Affairs
Statistical Office
National Bureau of Statistics
Central Bank
National Bank of the Republic of Macedonia
Stock Exchange
Macedonian Stock Exchange
Search Engines
Google
Mkd
Org
Economic Portals

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Political Outline

Executive Power
The Republic of Macedonia proclaimed its independence in 1991, at the time of the dissolution of the former Federal Social Republic of Yugoslavia.  Macedonia is a federal republic, its current constitution was adopted in November 20, 1991.

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.

Legislative Power
The legislative power is conducted by the Parliament, the central instrument of the political system.  It is unicameral and the assembly is composed of 120 members who are elected every four years by direct popular vote.
Main Political Parties
The country's main political differences are based on an ethnic level.  In fact, the political parties represent the different ethnic groups of the country:  The majorities are Macedonians and the minorities are Albanians.  The major political parties in the country are:
- SDSM (Social Democratic Union of Macedonia) – social democratic party, it is the largest one in the country, which supports a reconciliation with the Albanian minorities;
- VMRO-DPMNE (Internal Macedonian Revolutionary Organization–Democratic Party for Macedonian National Unity) – a Christian democratic party supporting the interests of  the ethnic Macedonian majority;
- DUI (Democratic Union for Integration) – the largest party among the Albanian population;
- DPA (Democratic Party of Albanians) – an ethnic party of Albanians;
- LDP (Liberal Democratic Party) – a liberal political party.
Current Political Leaders
President: Gjorgji Ivanov (since April 2009) - VMRO-DPMNE
Prime Minister: Nikola GRUEVSKI (since August 2006) – VMRO-DPMNE
Next Election Dates
President : March 2014;
Legislative: July 2012
 

Indicator of Freedom of the Press

World Rank:
68/178
Evolution:
34 places down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Partly Free
Political Freedom:
3/7
Civil Liberties:
3/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012