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 GDP (official exchange rate): GDP - real growth rate: GDP - per capita (PPP): Gross national saving: GDP - composition, by end use: GDP - composition, by sector of origin: Agriculture - products: Industries: Industrial production growth rate: Labor force: Labor force - by occupation: Unemployment rate: Population below poverty line: Household income or consumption by percentage share: Distribution of family income - Gini index: Budget: Taxes and other revenues: Budget surplus (+) or deficit (-): Public debt: Fiscal year: Inflation rate (consumer prices): Central bank discount rate: Commercial bank prime lending rate: Stock of narrow money: Stock of broad money: Stock of domestic credit: Market value of publicly traded shares: Current account balance: Exports: Exports - partners: Exports - commodities: Imports: Imports - commodities: Imports - partners: Reserves of foreign exchange and gold: Debt - external: Stock of direct foreign investment - at home: Stock of direct foreign investment - abroad: Exchange rates:
country comparison to the world:
131
[see also: GDP country ranks ]
$11.37 billion
(2017 est.)
[see also: GDP (official exchange rate) country ranks ]
0%
(2017 est.)
2.9%
(2016 est.)
3.9%
(2015 est.)
country comparison to the world:
197
[see also: GDP - real growth rate country ranks ]
$14,900
(2017 est.)
$15,000
(2016 est.)
$14,600
(2015 est.)
note: data are in 2017 dollars
country comparison to the world:
113
[see also: GDP - per capita country ranks ]
30.3% of GDP
(2017 est.)
29.9% of GDP
(2016 est.)
28.5% of GDP
(2015 est.)
country comparison to the world:
29
[see also: Gross national saving country ranks ]
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 ]
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 ]
grapes, tobacco, vegetables, fruits; milk, eggs
food processing, beverages, textiles, chemicals, iron, steel, cement, energy, pharmaceuticals, automotive parts
-7.8%
(2017 est.)
country comparison to the world:
198
[see also: Industrial production growth rate country ranks ]
950,800
(2017 est.)
country comparison to the world:
147
[see also: Labor force country ranks ]
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 ]
22.4%
(2017 est.)
23.8%
(2016 est.)
country comparison to the world:
191
[see also: Unemployment rate country ranks ]
21.5%
(2015 est.)
[see also: Population below poverty line country ranks ]
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 ]
33.7
(2015)
35.2
(2014)
country comparison to the world:
111
[see also: Distribution of family income - Gini index country ranks ]
revenues: 3.295 billion
(2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 3.605 billion
(2017 est.)
[see also: Budget - expenditures country ranks ]
29% (of GDP)
(2017 est.)
country comparison to the world:
88
[see also: Taxes and other revenues country ranks ]
-2.7% (of GDP)
(2017 est.)
country comparison to the world:
122
[see also: Budget surplus (+) or deficit (-) country ranks ]
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:
134
[see also: Public debt country ranks ]
calendar year
1.4%
(2017 est.)
-0.2%
(2016 est.)
country comparison to the world:
78
[see also: Inflation rate (consumer prices) country ranks ]
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:
106
[see also: Central bank discount rate country ranks ]
6.21%
(31 December 2017 est.)
6.61%
(31 December 2016 est.)
country comparison to the world:
125
[see also: Commercial bank prime lending rate country ranks ]
$2.403 billion
(31 December 2017 est.)
$1.909 billion
(31 December 2016 est.)
country comparison to the world:
129
[see also: Stock of narrow money country ranks ]
$2.403 billion
(31 December 2017 est.)
$1.909 billion
(31 December 2016 est.)
country comparison to the world:
136
[see also: Stock of broad money country ranks ]
$6.243 billion
(31 December 2017 est.)
$5.01 billion
(31 December 2016 est.)
country comparison to the world:
123
[see also: Stock of domestic credit country ranks ]
$2.078 billion
(31 December 2016)
$1.853 billion
(31 December 2015)
$2.269 billion
(31 December 2014)
country comparison to the world:
98
[see also: Market value of publicly traded shares country ranks ]
-$151 million
(2017 est.)
-$293 million
(2016 est.)
country comparison to the world:
92
[see also: Current account balance country ranks ]
$4.601 billion
(2017 est.)
$3.75 billion
(2016 est.)
country comparison to the world:
114
[see also: Exports country ranks ]
Germany 46.7%, Bulgaria 6.1%, Serbia 4.4%, Belgium 4.1%
(2017)
foodstuffs, beverages, tobacco; textiles, miscellaneous manufactures, iron, steel; automotive parts
$6.63 billion
(2017 est.)
$5.805 billion
(2016 est.)
country comparison to the world:
116
[see also: Imports country ranks ]
machinery and equipment, automobiles, chemicals, fuels, food products
Germany 11.9%, UK 10%, Greece 8%, Serbia 7.1%, China 5.9%, Italy 5.5%, Turkey 4.5%, Bulgaria 4.3%
(2017)
$2.802 billion
(31 December 2017 est.)
$2.755 billion
(31 December 2016 est.)
country comparison to the world:
112
[see also: Reserves of foreign exchange and gold country ranks ]
$8.79 billion
(31 December 2017 est.)
$7.685 billion
(31 December 2016 est.)
country comparison to the world:
117
[see also: Debt - external country ranks ]
$6.937 billion
(31 December 2017 est.)
$6.8 billion
(31 December 2016 est.)
country comparison to the world:
99
[see also: Stock of direct foreign investment - at home country ranks ]
$1.169 billion
(31 December 2017 est.)
$849.1 million
(31 December 2016 est.)
country comparison to the world:
88
[see also: Stock of direct foreign investment - abroad country ranks ]
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.)