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Macedonia Economy Profile 2017

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Economy - overviewSince its independence in 1991, Macedonia has made progress in liberalizing its economy and improving its business environment. Its low tax rates and free economic zones have helped to attract foreign investment, which is still low relative to the rest of Europe. Corruption and weak rule of law remain significant problems. Some businesses complain of opaque regulations and unequal enforcement of the law.

Macedonia’s economy is closely linked to Europe as a customer for exports and source of investment, and has suffered as a result of prolonged weakness in the euro zone. Unemployment has remained consistently high at about 23%, but may be overstated based on the existence of an extensive gray market, estimated to be between 20% and 45% of GDP, which is not captured by official statistics.

Macedonia is working to build a country-wide natural gas pipeline and distribution network. Currently, Macedonia receives its small natural gas supplies from Russia via Bulgaria. In 2016, Macedonia signed a memorandum of understanding with Greece to build an interconnector that could connect to the Trans-Adriatic Pipeline that will traverse the region once complete, or to an LNG import terminal in Greece.

Macedonia maintained macroeconomic stability through the global financial crisis by conducting prudent monetary policy, which keeps the domestic currency pegged to the euro, and inflation at a low level. However, in the last two years, the internal political crisis has hampered economic performance, with GDP slowing in 2016, and both domestic private and public investments declining. Fiscal policies were lax, with unproductive public expenditures, including subsidies and pension increases, and rising guarantees for the debt of state owned enterprises, and fiscal targets were consistently missed. In 2016, public debt reached 50.5% of GDP before being revised down to 47.8% of GDP by year’s end, still relatively low compared to its Western Balkan neighbors and the rest of Europe. In 2016, Macedonia issued a Eurobond worth approximately $495 million to finance 2016 and part of 2017 budget needs.
GDP (purchasing power parity)$29.52 billion (2016 est.)
$28.82 billion (2015 est.)
$27.77 billion (2014 est.)
note: data are in 2016 dollars; Macedonia has a large informal sector that may not be reflected in these data
GDP (official exchange rate)$10.49 billion (2016 est.)
GDP - real growth rate2.4% (2016 est.)
3.8% (2015 est.)
3.6% (2014 est.)
GDP - per capita (PPP)$14,500 (2016 est.)
$14,000 (2015 est.)
$13,400 (2014 est.)
note: data are in 2016 dollars
Gross national saving30.6% of GDP (2016 est.)
30.5% of GDP (2015 est.)
29.7% of GDP (2014 est.)
GDP - composition, by end usehousehold consumption: 68%
government consumption: 15.7%
investment in fixed capital: 18%
investment in inventories: 12.8%
exports of goods and services: 49.3%
imports of goods and services: -63.8% (2016 est.)
GDP - composition by sectoragriculture: 8.4%
industry: 25.2%
services: 66.5% (2016 est.)
Population below poverty line21.5% (2015 est.)
Labor force950,300 (2016 est.)
Labor force - by occupationagriculture: 16.6%
industry: 29.6%
services: 53.8% (2016 est.)
Unemployment rate23.1% (2016 est.)
24.6% (2015 est.)
Unemployment, youth ages 15-24total: 53.1%
male: 52%
female: 55% (2014 est.)
Household income or consumption by percentage sharelowest 10%: 2.2%
highest 10%: 34.5% (2009 est.)
Distribution of family income - Gini index33.7 (2015)
35.2 (2014)
Budgetrevenues: $3.041 billion
expenditures: $3.33 billion (2016 est.)
Taxes and other revenues29% of GDP (2016 est.)
Budget surplus (+) or deficit (-)-2.8% of GDP (2016 est.)
Public debt47.8% of GDP (2016 est.)
46.7% of GDP (2015 est.)
note: official data from Ministry of Finance; data cover central government debt; this data excludes debt instruments issued (or owned) by government entities other than the treasury; includes treasury debt held by foreign entitites; excludes debt issued by sub-national entities, as well as intra-governmental debt; there are no debt instruments sold for social funds
Inflation rate (consumer prices)-0.2% (2016 est.)
-0.3% (2015 est.)
Central bank discount rate3.25% (31 March 2017)
3.75% (31 December 2016)
note: series discontinued in January 2010; the discount rate has been replaced by a referent rate for calculating the penalty rate
Commercial bank prime lending rate4% (31 December 2016 est.)
4.3% (31 December 2015 est.)
Stock of narrow money$2 billion (31 December 2016 est.)
$1.825 billion (31 December 2015 est.)
Stock of broad money$6.308 billion (31 December 2016 est.)
$5.964 billion (31 December 2015 est.)
Stock of domestic credit$5.073 billion (31 December 2016 est.)
$5.043 billion (31 December 2015 est.)
Market value of publicly traded shares$2.078 billion (31 December 2016)
$1.853 billion (31 December 2015)
$2.269 billion (31 December 2014)
Agriculture - productsgrapes, tobacco, vegetables, fruits; milk, eggs
Industriesfood processing, beverages, textiles, chemicals, iron, steel, cement, energy, pharmaceuticals, automotive parts
Industrial production growth rate3.4% (2016 est.)
Current Account Balance-$336 million (2016 est.)
-$207 million (2015 est.)
Exports$4.787 billion (2016 est.)
$4.49 billion (2015 est.)
Exports - commoditiesfoodstuffs, beverages, tobacco; textiles, miscellaneous manufactures, iron, steel; automotive parts
Exports - partnersGermany 33.2%, Kosovo 11.5%, Bulgaria 5.1%, Greece 4.5% (2015)
Imports$6.757 billion (2016 est.)
$6.4 billion (2015 est.)
Imports - commoditiesmachinery and equipment, automobiles, chemicals, fuels, food products
Imports - partnersGermany 15.9%, UK 13.6%, Greece 10.9%, Serbia 8.7%, Bulgaria 6.7%, Turkey 5.5%, Italy 4.7% (2015)
Reserves of foreign exchange and gold$2.732 billion (31 December 2016 est.)
$2.471 billion (31 December 2015 est.)
Debt - external$7.646 billion (31 December 2016 est.)
$6.873 billion (31 December 2015 est.)
Stock of direct foreign investment - at home$5.628 billion (31 December 2016 est.)
$5.232 billion (31 December 2015 est.)
Stock of direct foreign investment - abroad$749.6 million (31 December 2016 est.)
$599.6 million (31 December 2015 est.)
Exchange ratesMacedonian denars (MKD) per US dollar -
56.82 (2016 est.)
55.537 (2015 est.)
55.537 (2014 est.)
46.437 (31 December 2013 est.)
47.89 (2012 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on July 9, 2017

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