Flag of Macedonia

Macedonia Economy Profile 2018

Home > Factbook > Countries > Macedonia

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 2017, public debt stabilized at about 47% of GDP, 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)$31.55 billion (2017 est.)
$30.78 billion (2016 est.)
$30.06 billion (2015 est.)
note: data are in 2017 dollars; Macedonia has a large informal sector that may not be reflected in these data
GDP (official exchange rate)$11.42 billion (2016 est.)
GDP - real growth rate2.5% (2017 est.)
2.4% (2016 est.)
3.8% (2015 est.)
GDP - per capita (PPP)$15,200 (2017 est.)
$14,900 (2016 est.)
$14,500 (2015 est.)
note: data are in 2017 dollars
Gross national saving26.1% of GDP (2017 est.)
30.5% of GDP (2016 est.)
29% of GDP (2015 est.)
GDP - composition, by end usehousehold consumption: 65.6%
government consumption: 15.6%
investment in fixed capital: 13.6%
investment in inventories: 20.2%
exports of goods and services: 54%
imports of goods and services: -69% (2017 est.)
GDP - composition by sectoragriculture: 10%
industry: 30%
services: 60% (2017 est.)
Population below poverty line21.5% (2015 est.)
Labor force950,800 (2017 est.)
Labor force - by occupationagriculture: 16.6%
industry: 29.6%
services: 53.8% (2016 est.)
Unemployment rate23.4% (2017 est.)
23.6% (2016 est.)
Unemployment, youth ages 15-24total: 47.3%
male: 49.7%
female: 43.3% (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: $3.314 billion
expenditures: $3.655 billion (2017 est.)
Taxes and other revenues29% of GDP (2017 est.)
Budget surplus (+) or deficit (-)-3% of GDP (2017 est.)
Public debt47.3% of GDP (2017 est.)
47.8% of GDP (2016 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; there are no debt instruments sold for social funds
Inflation rate (consumer prices)0.3% (2017 est.)
-0.2% (2016 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 rate6.2% (31 December 2017 est.)
6.61% (31 December 2016 est.)
Stock of narrow money$2.155 billion (31 December 2017 est.)
$1.909 billion (31 December 2016 est.)
Stock of broad money$5.036 billion (31 December 2017 est.)
$4.574 billion (31 December 2016 est.)
Stock of domestic credit$5.2 billion (31 December 2017 est.)
$5.01 billion (31 December 2016 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% (2017 est.)
Current Account Balance-$261 million (2017 est.)
-$336 million (2016 est.)
Exports$4.276 billion (2017 est.)
$3.75 billion (2016 est.)
Exports - commoditiesfoodstuffs, beverages, tobacco; textiles, miscellaneous manufactures, iron, steel; automotive parts
Exports - partnersGermany 40.9%, Kosovo 13.5%, Serbia 7.7%, Bulgaria 4.5% (2016)
Imports$6.446 billion (2017 est.)
$5.805 billion (2016 est.)
Imports - commoditiesmachinery and equipment, automobiles, chemicals, fuels, food products
Imports - partnersGermany 12.2%, UK 10.7%, Serbia 7.9%, Greece 7.3%, China 6.2%, Italy 5.6%, Turkey 5.1%, Bulgaria 4.6% (2016)
Reserves of foreign exchange and gold$2.794 billion (31 December 2017 est.)
$2.755 billion (31 December 2016 est.)
Debt - external$8.07 billion (31 December 2017 est.)
$7.685 billion (31 December 2016 est.)
Stock of direct foreign investment - at home$7.15 billion (31 December 2017 est.)
$6.8 billion (31 December 2016 est.)
Stock of direct foreign investment - abroad$899.1 million (31 December 2017 est.)
$849.1 million (31 December 2016 est.)
Exchange ratesMacedonian denars (MKD) per US dollar -
55.8 (2017 est.)
55.733 (2016 est.)
55.733 (2015 est.)
55.537 (2014 est.)
46.437 (31 December 2013 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on January 20, 2018

Economy Comparison