North Macedonia Economy - 2022

GEOGRAPHICAL NAMES 

Economic 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.

Real GDP (purchasing power parity)

$33.02 billion (2020 est.)

$34.59 billion (2019 est.)

$33.52 billion (2018 est.)

note: data are in 2017 dollars; Macedonia has a large informal sector that may not be reflected in these data

Real GDP growth rate

0% (2017 est.)

2.9% (2016 est.)

3.9% (2015 est.)

Real GDP per capita

$15,800 (2020 est.)

$16,600 (2019 est.)

$16,100 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$12.696 billion (2019 est.)

Inflation rate (consumer prices)

0.7% (2019 est.)

1.4% (2018 est.)

1.3% (2017 est.)

Credit ratings

Fitch rating: BB+ (2019)

Standard & Poors rating: BB- (2013)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 10.9% (2017 est.)

industry: 26.6% (2017 est.)

services: 62.5% (2017 est.)

GDP - composition, by end use

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.)

Agricultural products

milk, grapes, wheat, potatoes, green chillies/peppers, cabbages, tomatoes, maize, barley, watermelons

Industries

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

Industrial production growth rate

-7.8% (2017 est.)

Labor force

793,000 (2020 est.)

Labor force - by occupation

agriculture: 16.2%

industry: 29.2%

services: 54.5% (2017 est.)

Unemployment rate

17.29% (2019 est.)

20.7% (2018 est.)

Youth unemployment rate (ages 15-24)

total: 36.4%

male: 33.5%

female: 41.5% (2021 est.)

Population below poverty line

21.6% (2018 est.)

Gini Index coefficient - distribution of family income

34.2 (2017 est.)

35.2 (2014)

Household income or consumption by percentage share

lowest 10%: 1.7%

highest 10%: 25% (2015 est.)

Budget

revenues: 3.295 billion (2017 est.)

expenditures: 3.605 billion (2017 est.)

Budget surplus (+) or deficit (-)

-2.7% (of GDP) (2017 est.)

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

Taxes and other revenues

29% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

-$151 million (2017 est.)

-$293 million (2016 est.)

Exports

$7.18 billion (2020 est.) note: data are in current year dollars

$7.78 billion (2019 est.) note: data are in current year dollars

$7.61 billion (2018 est.) note: data are in current year dollars

Exports - partners

Germany 45%, Serbia 8%, Bulgaria 5% (2019)

Exports - commodities

support catalysts, centrifuges, insulated wiring, vehicle parts, buses, seats (2019)

Imports

$8.76 billion (2020 est.) note: data are in current year dollars

$9.6 billion (2019 est.) note: data are in current year dollars

$9.23 billion (2018 est.) note: data are in current year dollars

Imports - partners

United Kingdom 14%, Germany 14%, Greece 8%, Serbia 8% (2019)

Imports - commodities

platinum, refined petroleum, laboratory ceramics, cars, insulated wiring (2019)

Reserves of foreign exchange and gold

$2.802 billion (31 December 2017 est.)

$2.755 billion (31 December 2016 est.)

Debt - external

$9.065 billion (2019 est.)

$9.398 billion (2018 est.)

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.)

NOTE: The information regarding North Macedonia on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of North Macedonia 2022 information contained here. All suggestions for corrections of any errors about North Macedonia 2022 should be addressed to the CIA or the source cited on each page.