Economy Of Macedonia

Economy overview At independence in September 1991, Macedonia was the least developed of the Yugoslav republics, producing a mere 5% of the total federal output of goods and services. The collapse of Yugoslavia ended transfer payments from the center and eliminated advantages from inclusion in a de facto free trade area. An absence of infrastructure, UN sanctions on Yugoslavia, one of its largest markets, and a Greek economic embargo over a dispute about the country's constitutional name and flag hindered economic growth until 1996. GDP subsequently rose each year through 2000. However, the leadership's commitment to economic reform, free trade, and regional integration was undermined by the ethnic Albanian insurgency of 2001. The economy shrank 4.5% because of decreased trade, intermittent border closures, increased deficit spending on security needs, and investor uncertainty. Growth barely recovered in 2002 to 0.9%, then rose to 2.8% in 2003. Unemployment at one-third of the workforce remains the most critical economic problem. The gray economy is estimated at around 40% of GDP. Politically, the country is more stable than in 2002.
 
GDP purchasing power parity - $13.81 billion (2004 est.)
 
GDP - real growth rate 2.8% (2004 est.)
 
GDP - per capita purchasing power parity - $6,700 (2004 est.)
 
GDP - composition by sector
agriculture: 11.3%
industry: 32.1%
services: 56.6% (2004 est.)
 
Investment gross fixed 16.3% of GDP (2004 est.)
 
Population below poverty line 30.2% (2002 est.)
 
Household income or consumption by percentage share
lowest 10%: NA
highest 10%: NA
 
Distribution of family income - Gini index  
Inflation rate consumer prices 1.2% (2004 est.)
 
Labor force 860,000 (2003 est.)
 
Labor force by occupation agriculture NA, industry NA, services NA
 
Unemployment rate 36.7% (2004 est.)
 
Budget
revenues: $1.582 billion
expenditures: $1.661 billion, including capital expenditures of $80 million NA (2004 est.)
 
Public debt 30.2% of GDP (2004 est.)
 
Agriculture products rice, tobacco, wheat, corn, millet, cotton, sesame, mulberry leaves, citrus, vegetables; beef, pork, poultry, mutton
 
Industries coal, metallic chromium, lead, zinc, ferronickel, textiles, wood products, tobacco, food processing, buses, steel
 
Industrial production growth rate 4.5% (2004 est.)
 
Electricity production 6.465 billion kWh (2001)
 
Electricity production by source
fossil fuel: 83.7%
hydro: 16.3%
other: 0% (2001)
nuclear: 0%
 
Electricity consumption 6.112 billion kWh (2001)
 
Electricity exports 0 kWh (2001)
 
Electricity imports 100 million kWh (2001)
 
Oil production 0 bbl/day (2001 est.)
 
Oil consumption 20,000 bbl/day (2001 est.)
 
Oil exports NA (2001)
 
Oil imports NA (2001)
 
Oil proved reserves  
Natural gas production  
Natural gas consumption  
Natural gas exports  
Natural gas imports  
Natural gas proved reserves  
Current account balance $-278 million (2004 est.)
 
Exports $1.346 billion f.o.b. (2004 est.)
 
Exports commodities food, beverages, tobacco; miscellaneous manufactures, iron and steel
 
Exports partners Yugoslavia 37.8%, Germany 27%, Italy 14.7%, Greece 9.7%, Croatia 6.9%, US 6.1%, Netherlands 4.8% (2003)
 
Imports $2.184 billion f.o.b. (2003 est.)
 
Imports commodities machinery and equipment, chemicals, fuels; food products
 
Imports partners Greece 17.3%, Germany 12.6%, Yugoslavia 9.2%, Slovenia 7.9%, Bulgaria 7.4%, Italy 6.2%, Turkey 6% (2003)
 
Reserves of foreign exchange gold $935.1 million (2004 est.)
 
Debt external $1.929 billion (2004 est.)
 
Economic aid recipient $250 million (2003 est.)
 
Currency Macedonian denar (MKD)
 
Currency code MKD
 
Exchange rates Macedonian denars per US dollar - NA (2003), 64.3498 (2002), 68.0371 (2001), 65.9039 (2000), 56.9018 (1999)
 
Fiscal year calendar year

 

 

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This information was reproduced in part from the CIA World Fact book.

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