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North Macedonia North Macedonia Introduction Key Economic Facts Risk Assessment (Provided by Coface) North Macedonia is a small, landlocked country located in Income Level (by per capita Upper Middle Income Country rating: C - A very uncertain political and economic the central Balkan Peninsula in Southeastern Europe. It is GNI): outlook and a business environment with many troublesome bordered by Albania, Bulgaria, Greece, Kosovo, and Serbia. Level of Development: Developing weaknesses can have a significant impact on corporate North Macedonia is a major transportation GDP, PPP (current international $36.68 billion (2019) corridor from Western and Central Europe $): payment behavior. Corporate default probability is high. to the Aegean Sea and Southern Europe GDP growth (annual %): 3.20% (2019) Business Climate rating: A4 - The business environment to Western Europe. The government GDP per capita, PPP (current $17,607.47 (2019) is acceptable. Corporate financial information is sometimes system is a parliamentary republic; the international $): neither readily available nor sufficiently reliable. Debt chief of state is the president, and the head of government External debt stocks, total $8,986,208,892.00 (2019) collection is not always efficient and the institutional is the prime minister. North Macedonia has a small, open (DOD, current US$): economy that is vulnerable to economic developments in Manufacturing, value added (% 12.85% (2018) framework has shortcomings. Intercompany transactions Europe and dependent on of GDP): may thus run into appreciable difficulties in the acceptable regional integration for Current account balance (BoP, -$0.35 billion (2019) but occasionally unstable environments rated A4. current US$): continued economic growth. Strengths North Macedonia is a member Inflation, consumer prices 0.77% (2019) • Association and Stabilisation Agreement with the EU, of the Central European Free (annual %): Trade Agreement (CEFTA) and Labor force, total: 958,956 (2020) candidate for accession since 2003 North Atlantic Treaty Unemployment, total (% of 16.44% (2020) • Integrated into the European manufacturing Organization (NATO). total labor force) (modeled ILO estimate): production chain Location: Southern Europe Imports of goods and services $9.60 billion (2019) • Close to factories in Central Europe and at the Capital City: Skopje (+1 GMT) (current US$): meeting point of two European corridors Chief of State: President Stevo Pendarovski Exports of goods and services $7.82 billion (2019) • Wage competitiveness (current US$): Head of Govt.: Prime Minister Zoran Zaev • Support from European donors Currency: Macedonian denar (MKD) GDP Composition % Agriculture Services Industry Manufacturing • High levels of remittances from expatriate workers Major Languages: <p>Macedonian (official) 66.5%, Albanian (official) 25.1%, Turkish • Denar pegged to the euro 3.5%, Roma 1.9%, Serbian 1.2%, 55 Weaknesses other 1.8%</p> 23 8 0 • Low participation rate (47%), high structural Primary Religions: <p>Macedonian Orthodox 64.8%, Muslim 33.3%, other Christian 0.4%, *Although Manufacturing is included in the Industry figures, it is also separately unemployment and lack of productivity due to other and unspecified 1.5%</p> reported because it plays a critical role in economy. inadequate training Rankings Calling Code: 389 • Large informal economy linked to the inefficient Voltage: 220 Index Rank government and cumbersome regulation Corruption Perceptions Index 106 / 180 Key Websites • Sustained emigration to the EU by young people, Global Competitiveness Index 82 / 141 who face 35% of unemployment Main Government Page: vlada.mk Global Enabling Trade Index 56 / 136 • High level of euroization (40% of bank deposits and Export Promotion Agency: investnorthmacedonia.gov.mk Index of Economic Freedom 32 / 179 Investment Promotion investnorthmacedonia.gov.mk International Logistics Performance Index (LPI) 81 / 160 credit) Agency: Inward FDI Potential Index 105 / 139 • Inadequate transport, energy, health and education KOF Index of Globalization 94 / 185 infrastructure Networked Readiness Index (NRI) 46 / 139 • Polarised political landscape Open Budget Index 74 / 115 • Tensions between the Slavic majority and the Albanian minority U.S. Embassy U.S. Embassy Skopje Str. "Samoilova" Nr.21 1000 Skopje Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV North Macedonia Republic of North Macedonia Phone: +389 2 310-2000 https://mk.usembassy.gov Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV.
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