Economy of North Macedonia

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Economy of North Macedonia

National Bank of North Macedonia
Currency	Macedonian denar (den, MKD)
Fiscal year	calendar уеаr
Trade organisations	WTO, CEFTA, Open Balkan
Country group	Developing/Emerging[1] Upper-middle income economy[2]
Statistics
Population	1,829,713 (2023 state statistics) [3]
GDP	$17.43 billion (nominal, 2024 est.)[4] $46.49 billion (PPP, 2024 est.)[5]
GDP rank	133rd (nominal, 2023 est.) 127st (PPP, 2023 est.)
GDP growth	-4.7% (2020)[4] +3.9% (2021)[4] +2.2% (2022)[4] +1.4% (2023)[4]
GDP per capita	$9,529 (nominal, 2024 est.)[6] $25,418 (PPP, 2024 est.)[4]
GDP per capita rank	93rd (nominal, 2023 est.) 80th (PPP, 2023 est.)
GDP by sector	agriculture: 8.4% industry: 25.2% services: 66.5% (2016)[7]
Inflation (CPI)	−0.9% (2020 est.)[5]
Population below poverty line	21.8% (2020)[8] 41.1% at risk of poverty or social exclusion (2018)[9] 16.9% on less than $5.50/day (2020f)[10]
Gini coefficient	33.5 medium (2019, Data World Bank)[11]
Human Development Index	0.770 high (2021)[12] (78th) 0.686 medium IHDI (2021)[13]
Labour force	791.647 (2023) [14]
Labour force by occupation	agriculture: 16.6% industry: 29.6% services: 53.8% (2016)[7]
Unemployment	13.1% (Q4, 2023)[14] 27.2% youth unemployment (2023)[15]
Average gross salary	MKD 54,177 / €880 / $961 monthly (April, 2023)[16]
Average net salary	MKD 36,134 / €587 / $641 monthly (April, 2023)[17]
Main industries	food processing, beverages, textiles, chemicals, iron, steel, cement, energy, pharmaceuticals, automotive parts
External
Exports	$7,188 billion (2019)[18]
Export goods	foodstuffs, beverages, tobacco; textiles, miscellaneous manufactures, iron, steel; automotive parts
Main export partners	Germany 44.6%  Serbia 8.1%  Bulgaria 4.7%  Greece 3.3%  Italy 2.9%  Hungary 2.8%  United Kingdom 2.49%  China 2.48%  Czech Republic 2.2%  Turkey 2.1%  Albania 1.4% (2022)[19]
Imports	$9,470 billion (2019)[18]
Import goods	machinery and equipment, automobiles, chemicals, fuels, food products
Main import partners	United Kingdom 16.4%  Greece 14.6%  Germany 9.5%  Kosovo 8.4%  Serbia 7.7%  China 5.03%  Bulgaria 5.02%  Turkey 4.8%  Hungary 3.4%  Italy 3.2%  Albania 2.8%  Romania 2.3% (2022)[20]
FDI stock	$6.937 billion (31 December 2017 est.)[21] Abroad: $1.169 billion (31 December 2017 est.)[21]
Current account	−$151 million (2017 est.)[21]
Gross external debt	$8.79 billion (31 December 2017 est.)[21]
Public finances
Government debt	47.3% of GDP (2017)[22]
Budget balance	−2.7% (of GDP) (2017 est.)[21]
Revenues	3.295 billion (2017 est.)[21]
Expenses	3.605 billion (2017 est.)[21]
Credit rating	Standard & Poor's:[23] BB-(Domestic) BB-(Foreign) BB(T&C Assessment) Outlook: Stable[24] (2014) Fitch:[24] BB+ Outlook: Stable (2011)
Foreign reserves	$2.802 billion (31 December 2017 est.)[21]
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars.

The economy of North Macedonia has become more liberalized, with an improved business environment,^[7] since its independence from Yugoslavia in 1991, which deprived the country of its key protected markets and the large transfer payments from Belgrade. Prior to independence, North Macedonia was Yugoslavia's poorest republic (only 5% of the total federal output of goods and services). An absence of infrastructure, United Nations sanctions on its largest market (the Federal Republic of Yugoslavia),^[25] and a Greek economic embargo hindered economic growth until 1996.^{[citation needed]}

Worker remittances and foreign aid have softened the subsequent volatile recovery period. The country's GDP has increased each year except in 2001, rising by 5% in 2000. However, growth in 1999 was held down by the severe regional economic dislocations caused by the Kosovo War.

Successful privatization in 2000 boosted the country's reserves to over $700 million. Also, the leadership demonstrated a continuing commitment to economic reform, free trade, and regional integration. The economy can meet its basic food, coal and hydroelectric power needs but depends on outside sources for all of its petroleum and natural gas and most of its modern machinery and parts. Inflation jumped to 11% in 2000 largely due to higher oil prices,^{[citation needed]} but the currency has calmed since the exchange rate was normalised when the EU Stabilisation and Association Agreement entered into force in 2004.