Macedonia Economy - 2005

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 the down-sized 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 by a moderate 3.4% in 2003, and is estimated at 1.3% in 2004. Unemployment at one-third of the workforce remains a critical economic problem. Much of the extensive grey market activity falls outside official statistics.

GDP:
purchasing power parity - $14.4 billion (2004 est.)

GDP - real growth rate:
1.3% (2004 est.)

GDP - per capita:
purchasing power parity - $7,100 (2004 est.)

GDP - composition by sector:
agriculture: 11.2%
industry: 26%
services: 62.8% (2004 est.)

Labor force:
855,000 (2004 est.)

Labor force - by occupation:
agriculture NA%, industry NA%, services NA%

Unemployment rate:
37.7% (3rd quarter, 2004 est.)

Population below poverty line:
30.2% (2003 est.)

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
0.4% (2004 est.)

Investment (gross fixed):
17.5% of GDP (2004 est.)

Budget:
revenues: $1.198 billion
expenditures: $1.245 billion, including capital expenditures of $114 million (2004 est.)

Public debt:
20% of GDP (2004 est.)

Agriculture - products:
wheat, grapes, rice, tobacco, 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:
0% (2004 est.)

Electricity - production:
6.273 billion kWh (2003)

Electricity - consumption:
7.216 billion kWh (2003)

Electricity - exports:
0 kWh (2003)

Electricity - imports:
953 million kWh (2003)

Oil - production:
0 bbl/day (2003 est.)

Oil - consumption:
22,000 bbl/day (2003 est.)

Oil - exports:
NA

Oil - imports:
NA

Current account balance:
$-311 million (2004 est.)

Exports:
$1.629 billion f.o.b. (2004 est.)

Exports - commodities:
food, beverages, tobacco; miscellaneous manufactures, iron and steel

Exports - partners:
Serbia and Montenegro 30.8%, Germany 20.1%, Greece 9%, Croatia 7%, US 4.8% (2004)

Imports:
$2.677 billion f.o.b. (2004 est.)

Imports - commodities:
machinery and equipment, chemicals, fuels; food products, automobiles

Imports - partners:
Greece 18%, Germany 14.4%, Serbia and Montenegro 9.3%, Slovenia 8.1%, Bulgaria 7.6%, Turkey 7% (2004)

Reserves of foreign exchange and gold:
$928 million (2004 est.)

Debt - external:
$1.863 billion (2004 est.)

Economic aid - recipient:
$250 million (2003 est.)

Currency (code):
Macedonian denar (MKD)

Exchange rates:
Macedonian denars per US dollar - 49.41 (2004), 54.32 (2003), 64.35 (2002), 68.04 (2001), 65.9 (2000)