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The Economy of Macedonia

Macedonian Economy

Macedonia's map

Economy - overview: Macedonia's small, open economy make it vulnerable to economic developments in Europe and dependent on regional integration and progress toward EU membership for continued economic growth. At independence in September 1991, Macedonia was the least developed of the Yugoslav republics, producing a mere 5% of the total federal output of goods and services. The collapse of Yugoslavia ended transfer payments from the central government and eliminated advantages from inclusion in a de facto free trade area. An absence of infrastructure, UN sanctions on the downsized Yugoslavia, and a Greek economic embargo over a dispute about the country's constitutional name and flag hindered economic growth until 1996. GDP subsequently rose each year through 2000. In 2001, during a civil conflict, the economy shrank 4.5% because of decreased trade, intermittent border closures, increased deficit spending on security needs, and investor uncertainty. Growth averaged 4% per year during 2003-06 and 5% per year during 2007-08. Macedonia has maintained macroeconomic stability with low inflation, but it has so far lagged the region in attracting foreign investment and creating jobs, despite making extensive fiscal and business sector reforms. Official unemployment remains high at nearly 35%, but may be overstated based on the existence of an extensive gray market, estimated to be more than 20% of GDP, that is not captured by official statistics. In the wake of the global economic downturn, Macedonia has experienced decreased foreign direct investment, lowered credit, and a slowdown of export growth. The Government of Macedonia now predicts growth in 2009 to be no more than 3%.

GDP:

GDP - real growth rate: 4.6% (2008 est.) 5.1% (2007 est.) 3.7% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 11.4% industry: 27.2% services: 61.4% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 2.4% highest 10%: 29.6% (2003)

Distribution of family income - Gini index: 39 (2003)

Inflation rate (consumer prices):

Labor force: 900,000 (2008 est.)

Labor force - by occupation: agriculture: 19.6% industry: 30.4% services: 50% (September 2007)

Unemployment rate: 34.5% (2008 est.)

Budget: revenues: $2.889 billion expenditures: $2.985 billion (2008 est.)

Industries: food processing, beverages, textiles, chemicals, iron, steel, cement, energy, pharmaceuticals

Industrial production growth rate: 1.8% (2008 est.)

Electricity - production: 6.051 billion kWh (2007)

Electricity - production by source:

Electricity - consumption: 8.651 billion kWh (2007)

Electricity - exports: 0 kWh (2007 est.)

Electricity - imports: 2.6 billion kWh (2007)

Oil - production: 0 bbl/day (2007)

Oil - consumption: 19,590 bbl/day (2006 est.)

Oil - exports: 6,768 bbl/day (2005)

Oil - imports: 26,470 bbl/day (2005)

Oil - proved reserves: 0 bbl (1 January 2008 est.)

Natural gas - production: 0 cu m (2007 est.)

Natural gas - consumption: 100 million cu m (2006 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 102.8 million cu m (2007)

Natural gas - proved reserves: 0 cu m (1 January 2008 est.)

Agriculture - products: grapes, wine, tobacco, vegetables, fruits; milk, eggs

Exports: $4.397 billion f.o.b. (2008 est.)

Exports - commodities: food, beverages, tobacco; textiles, miscellaneous manufactures, iron and steel

Exports - partners: Serbia and Montenegro 19.2%, Germany 14.5%, Greece 10.4%, Italy 10.1%, Bulgaria 9.8%, Croatia 5.6%, Belgium 5%, Spain 5% (2007)

Imports: $6.663 billion f.o.b. (2008 est.)

Imports - commodities: machinery and equipment, automobiles, chemicals, fuels, food products

Imports - partners: Germany 13.2%, Greece 12.9%, Bulgaria 9.6%, Serbia and Montenegro 7.7%, Turkey 6.6%, Italy 6.3%, Slovenia 5% (2007)

Debt - external: $4.624 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Macedonian denars (MKD) per US dollar - 41.414 (2008 est.), 44.732 (2007), 48.978 (2006), 48.92 (2005), 49.41 (2004)

Fiscal year: