Economy - overview:
Since 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 growth slowing in 2016 and 2017, 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.

GDP (purchasing power parity):
$31.03 billion (2017 est.)
$31.02 billion (2016 est.)
$30.15 billion (2015 est.)

note: data are in 2017 dollars; Macedonia has a large informal sector that may not be reflected in these data
country comparison to the world (CIA rank, may be based on non-current data): 131
[see also: GDP country ranks ]

GDP (official exchange rate):
$11.37 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
0% (2017 est.)
2.9% (2016 est.)
3.9% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 197
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$14,900 (2017 est.)
$15,000 (2016 est.)
$14,600 (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 113
[see also: GDP - per capita country ranks ]

Gross national saving:
30.3% of GDP (2017 est.)
29.9% of GDP (2016 est.)
28.5% of GDP (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 29
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 65.6% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 15.6% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 13.6% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 20.2% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 54% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -69% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 10.9% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 26.6% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 62.5% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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

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

Industrial production growth rate:
-7.8% (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 198
[see also: Industrial production growth rate country ranks ]

Labor force:
950,800 (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 147
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 16.2%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 29.2%
[see also: Labor force - by occupation - industry country ranks ]
services: 54.5% (2017 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
22.4% (2017 est.)
23.8% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 191
[see also: Unemployment rate country ranks ]

Population below poverty line:
21.5% (2015 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 1.7%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 25% (2015 est.)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
33.7 (2015)
35.2 (2014)
country comparison to the world (CIA rank, may be based on non-current data): 111
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 3.295 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 3.605 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
29% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 88
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-2.7% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 122
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
39.3% of GDP (2017 est.)
39.5% 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
country comparison to the world (CIA rank, may be based on non-current data): 134
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
1.4% (2017 est.)
-0.2% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 78
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
3.25% (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
country comparison to the world (CIA rank, may be based on non-current data): 106
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
6.21% (31 December 2017 est.)
6.61% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 125
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$2.403 billion (31 December 2017 est.)
$1.909 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 129
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$2.403 billion (31 December 2017 est.)
$1.909 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 136
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$6.243 billion (31 December 2017 est.)
$5.01 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 123
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$2.078 billion (31 December 2016)
$1.853 billion (31 December 2015)
$2.269 billion (31 December 2014)
country comparison to the world (CIA rank, may be based on non-current data): 98
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$151 million (2017 est.)
-$293 million (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 92
[see also: Current account balance country ranks ]

Exports:
$4.601 billion (2017 est.)
$3.75 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 112
[see also: Exports country ranks ]

Exports - partners:
Germany 46.7%, Bulgaria 6.1%, Serbia 4.4%, Belgium 4.1% (2017)

Exports - commodities:
foodstuffs, beverages, tobacco; textiles, miscellaneous manufactures, iron, steel; automotive parts

Imports:
$6.63 billion (2017 est.)
$5.805 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 115
[see also: Imports country ranks ]

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

Imports - partners:
Germany 11.9%, UK 10%, Greece 8%, Serbia 7.1%, China 5.9%, Italy 5.5%, Turkey 4.5%, Bulgaria 4.3% (2017)

Reserves of foreign exchange and gold:
$2.802 billion (31 December 2017 est.)
$2.755 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 112
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$8.79 billion (31 December 2017 est.)
$7.685 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 117
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$6.937 billion (31 December 2017 est.)
$6.8 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 99
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$1.169 billion (31 December 2017 est.)
$849.1 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 88
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
Macedonian denars (MKD) per US dollar -
55.8 (2017 est.)
55.733 (2016 est.)
55.733 (2015 est.)
55.537 (2014 est.)
46.437 (2013 est.)