North Macedonia

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

North Macedonia - In Short.

Overview of North Macedonia

North Macedonia gained its independence peacefully from Yugoslavia in 1991 under the name of “Macedonia.” Greek objection to the new country’s name, insisting it implied territorial pretensions to the northern Greek province of Macedonia, and democratic backsliding for several years stalled the country’s movement toward Euro-Atlantic integration. Immediately after Macedonia declared independence, Greece sought to block Macedonian efforts to gain UN membership if the name “Macedonia” was used. The country was eventually admitted to the UN in 1993 as “The former Yugoslav Republic of Macedonia,” and at the same time it agreed to UN-sponsored negotiations on the name dispute. In 1995, Greece lifted a 20-month trade embargo and the two countries agreed to normalize relations, but the issue of the name remained unresolved and negotiations for a solution continued. Over time, the US and over 130 other nations recognized Macedonia by its constitutional name, Republic of Macedonia. Ethnic Albanian grievances over perceived political and economic inequities escalated into a conflict in 2001 that eventually led to the internationally brokered Ohrid Framework Agreement, which ended the fighting and established guidelines for constitutional amendments and the creation of new laws that enhanced the rights of minorities. In January 2018, the government adopted a new law on languages, which elevated the Albanian language to an official language at the national level, with the Macedonian language remaining the sole official language in international relations. Relations between ethnic Macedonians and ethnic Albanians remain complicated, however. North Macedonia’s pro-Western government has used its time in office since 2017 to sign a historic deal with Greece in June 2018 to end the name dispute and revive Skopje’s NATO and EU membership prospects. This followed a nearly three-year political crisis that engulfed the country but ended in June 2017 following a six-month-long government formation period after a closely contested election in December 2016. The crisis began after the 2014 legislative and presidential election, and escalated in 2015 when the opposition party began releasing wiretapped material that revealed alleged widespread government corruption and abuse. Although an EU candidate since 2005, North Macedonia has yet to open EU accession negotiations. The country still faces challenges, including fully implementing reforms to overcome years of democratic backsliding and stimulating economic growth and development. In June 2018, Macedonia and Greece signed the Prespa Accord whereby the Republic of Macedonia agreed to change its name to the Republic of North Macedonia. Following ratification by both countries, the agreement went in to force on 12 February 2019. North Macedonia signed an accession protocol to become a NATO member state in February 2019.
Value
Country Full Name
North Macedonia
Country Code
MKD
Region
Europe & Central Asia
Income Group
Upper middle income
Currency Unit
GDP
12263710123
Population
2072531
Land Area
25220
Net National Income Per Capita
4844.689244
GDP per Capita (PPP)
16925.51505

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

North Macedonia - Economic

Economy of North Macedonia

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.

Unemployment Rate

Inflation Rate

North Macedonia - GDP Composition

GDP Composiiton & Value Added of North Macedonia

Last Updated: Jan, 2021, Updated For 2020.

North Macedonia - GDP, Value Added

Demographics of North Macedonia

a fairly even distribution throughout most of the country, with urban areas attracting larger and denser populations
Geographic Location

Southeastern Europe, north of Greece

Races

Macedonian 64.2%, Albanian 25.2%, Turkish 3.9%, Romani 2.7%, Serb 1.8%, other 2.2% (2002 est.)note: North Macedonia has not conducted a census since 2002; Romani populations are usually underestimated in official statistics and may represent 6.5–13% of North Macedonia’s population

Languages

Macedonian (official) 66.5%, Albanian (official) 25.1%, Turkish 3.5%, Romani 1.9%, Serbian 1.2%, other (includes Aromanian (Vlach) and Bosnian) 1.8% (2002 est.); note - minority languages are co-official with Macedonian in municipalities where they are spoken by at least 20% of the population; Albanian is co-official in Tetovo, Brvenica, Vrapciste, and other municipalities; Turkish is co-official in Centar Zupa and Plasnica; Romani is co-official in Suto Orizari; Aromanian is co-official in Krusevo; Serbian is co-official in Cucer Sandevomajor-language

Religion

Macedonian Orthodox 64.8%, Muslim 33.3%, other Christian 0.4%, other and unspecified 1.5% (2002 est.)

Dependency & Expectancy of North Macedonia

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

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North Macedonia - Social Media Briefing

North Macedonia - Social Media & Social Commerce

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Politics & Policies of North Macedonia

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

BIS, CD, CE, CEI, EAPC, EBRD, EU (candidate country), FAO, IAEA, IBRD, ICAO, ICC (NGOs), ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITU, ITUC (NGOs), MIGA, NATO, OAS (observer), OIF, OPCW, OSCE, PCA, PFP, SELEC, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNIFIL, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO

Import of North Macedonia

Export of North Macedonia

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