Macedonia

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 (purchasing power parity):
$18.52 billion (2008 est.)
$17.71 billion (2007)
$16.85 billion (2006)
note: Macedonia has a large informal sector
GDP (official exchange rate):
$9.624 billion (2008 est.)
GDP - real growth rate:
4.6% (2008 est.)
5.1% (2007 est.)
3.7% (2006 est.)
GDP - per capita (PPP):
$9,000 (2008 est.)
$8,600 (2007 est.)
$8,200 (2006 est.)
GDP - composition by sector:
agriculture: 11.4%
industry: 27.2%
services: 61.4% (2008 est.)
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.)
Household income or consumption by percentage share:
lowest 10%: 2.4%
highest 10%: 29.6% (2003)
Distribution of family income - Gini index:
39 (2003)
Investment (gross fixed):
18% of GDP (2008 est.)
Budget:
revenues: $2.889 billion
expenditures: $2.985 billion (2008 est.)
Public debt:
35.9% of GDP (2008 est.)
Inflation rate (consumer prices):
8.4% (2008 est.)
Central bank discount rate:
6.5% (31 December 2007)
Commercial bank prime lending rate:
10.23% (31 December 2007)
Stock of money:
$1.173 billion (31 December 2007)
Stock of quasi money:
$3.127 billion (31 December 2007)
Stock of domestic credit:
$2.924 billion (31 December 2007)
Market value of publicly traded shares:
$2.715 billion (31 December 2007)
Agriculture - products:
grapes, wine, tobacco, vegetables, fruits; milk, eggs
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 - 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.)
Current account balance:
-$740 million (2008 est.)
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)
Reserves of foreign exchange and gold:
$2.43 billion (31 December 2008 est.)
Debt - external:
$4.624 billion (31 December 2008 est.)
Stock of direct foreign investment - at home:
$2.405 billion (2007 est.)
Stock of direct foreign investment - abroad:
$NA
Exchange rates:
Macedonian denars (MKD) per US dollar - 41.414 (2008 est.), 44.732 (2007), 48.978 (2006), 48.92 (2005), 49.41 (2004)