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.
0% (2017 est.)
2.9% (2016 est.)
3.9% (2015 est.)
0.7% (2019 est.)
1.4% (2018 est.)
1.3% (2017 est.)
Fitch rating: BB+ (2019)
Standard & Poors rating: BB- (2013)
$34.333 billion (2019 est.)
$33.268 billion (2018 est.)
$32.331 billion (2017 est.)
note: data are in 2017 dollars; Macedonia has a large informal sector that may not be reflected in these data
$12.696 billion (2019 est.)
$16,479 (2019 est.)
$15,972 (2018 est.)
$15,529 (2017 est.)
note: data are in 2017 dollars
31.4% of GDP (2019 est.)
32.4% of GDP (2018 est.)
31.6% of GDP (2017 est.)
agriculture: 10.9% (2017 est.)
industry: 26.6% (2017 est.)
services: 62.5% (2017 est.)
household consumption: 65.6% (2017 est.)
government consumption: 15.6% (2017 est.)
investment in fixed capital: 13.6% (2017 est.)
investment in inventories: 20.2% (2017 est.)
exports of goods and services: 54% (2017 est.)
imports of goods and services: -69% (2017 est.)
Overall score: 80.7 (2020)
Starting a Business score: 88.6 (2020)
Trading score: 93.9 (2020)
Enforcement score: 66 (2020)
milk, grapes, wheat, potatoes, green chillies/peppers, cabbages, tomatoes, maize, barley, watermelons
food processing, beverages, textiles, chemicals, iron, steel, cement, energy, pharmaceuticals, automotive parts
-7.8% (2017 est.)
793,000 (2020 est.)
agriculture: 16.2%
industry: 29.2%
services: 54.5% (2017 est.)
17.29% (2019 est.)
20.7% (2018 est.)
21.6% (2018 est.)
34.2 (2017 est.)
35.2 (2014)
lowest 10%: 1.7%
highest 10%: 25% (2015 est.)
revenues: 3.295 billion (2017 est.)
expenditures: 3.605 billion (2017 est.)
29% (of GDP) (2017 est.)
-2.7% (of GDP) (2017 est.)
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
calendar year
-$151 million (2017 est.)
-$293 million (2016 est.)
$4.601 billion (2017 est.)
$3.75 billion (2016 est.)
Germany 45%, Serbia 8%, Bulgaria 5% (2019)
support catalysts, centrifuges, insulated wiring, vehicle parts, buses, seats (2019)
$6.63 billion (2017 est.)
$5.805 billion (2016 est.)
United Kingdom 14%, Germany 14%, Greece 8%, Serbia 8% (2019)
platinum, refined petroleum, laboratory ceramics, cars, insulated wiring (2019)
$2.802 billion (31 December 2017 est.)
$2.755 billion (31 December 2016 est.)
$9.065 billion (2019 est.)
$9.398 billion (2018 est.)
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.)
NOTE: The information regarding North Macedonia on this page is re-published from the 2021 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of North Macedonia 2021 information contained here. All suggestions for corrections of any errors about North Macedonia 2021 should be addressed to the CIA or the source cited on each page.
This page was last modified 16 Dec 23, Copyright © 2023 ITA all rights reserved.