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Macedonia (FYR) Macedonia (FYR)

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Macedonia (FYR) – Quick View
ECR score44.23 (Mar 2011)
ECR rank88 (Mar 2011)
Economic
GDP Q3 2010USD 1.38 billion
GNI per capita PPP 2010USD 9,487
FDI inflow 2009USD 4,504.11 million
Inflation Q4 20102.9%
Central bank assets 2010USD 2,358.95 million
Unemployment rate Q3 201031.7%
Government deficitUSD 10.60 million
Tax revenueUSD 399.54 million
Political
Government typeParliamentary Democratic
Recent political crisisNA
Economic freedom score 201155th
Freedom of information score 201068th
Corruption perception index 201062nd
Structural
Birth rate 200911.5 per '000
Population balance 2009Under 14 - 18%
Population balance 2009Over 64 - 12%
Life expectancy years 2009Male 73
Life expectancy years 2009Female 77
Mortality rate 20099.3 per '000
Literacy rate 201097.4%
Internet access 201051%

[Top] Economic Overview

Macedonia has a small economy. The agricultural and industrial sectors are the two main contributors to Macedonia's economy, however the service sector has gained importance and grown in recent years.

(Source: traveldocs)

Macedonia's GDP  fluctuated between 2008 and 2010. GDP increased from MKD 60.26 billion in Q1 2010 to MKD 66.4 billion in Q3 2010.

The growth rate has constantly been fluctuating and declined sharply between 2008 and 2009. However, in 2010, the growth rate increased to reach 1.3% in Q3 2010.

Macedonia GDP and GDP growth

 

(Source: Bank of Macedonia page: 78)

GDP per capita

GDP per capita was EUR 3,253 in 2009, a decrease by 0.91%, compared to EUR 3,283 in 2008.

Macedonia GDP per capita

 

(Source: National Statistics page 2)

GNI per capita at PPP

The GNI per capita at PPP increased steadily from USD 7,546 in 2000 to USD 9,487 in 2010.

 

Macedonia GNI per capita at PPP

(Source: undp page: 4)

Income tax rate

The income tax rate on individual incomes in Macedonia is 10%.

(Source: investinmacedonia)

Corporate tax

Standard corporate tax in Macedonia is 10.6%.

Tax contribution

Total tax rate (%)

Corporate income tax

10

Fuel tax

MKD 24.4

Property transfer tax

3

Additional health contribution

0.5

Municipal fee

fixed fee of MKD 8,000

Property tax

0.1

Value Added Tax (VAT)

1

(Source: doingbusiness)

Inflation rate

The inflation rate in Macedonia declined in all four quarters of 2009 and then increased in 2010, reaching to 2.9% in Q4 2010.

 

Macedonia Inflation

(Source: Bank of Macedonia page: 41)

FDI Inflow

Between 2005 and 2009, FDI inflows increased from USD 2,086.86 million to USD 4,504.11 million.

Macedonia FDI net inflows

 

(Source: Bank of Macedonia page: 119)

Portfolio investment inflow

Macedonia Portfolio investment

 

(Source: Bank of Macedonia page:  107)

Banking sector assets

The table below shows the assets of National Bank of the Republic of Macedonia:

 

National bank of the Republic of Macedonia (MKD million)

 

2010 (Till September)

Dec. 2009

Dec. 2008

Foreign Assets

104,160

97,807

91,908

Claims on Central Government

5,405

1,319

1,304

Other Assets

2,784

2,813

2,898

(Source: Bank of Macedonia page:  84) 

[Top] Financial Indicators & Government Financial

Consumer price index

The CPI in 2010 fluctuated substantially, reaching a maximum of 101.3 in Q1 2009 and a minimum of 96.4 in Q2 2010 and Q3 2010.

 

Macedonia CPI

(Source: Bank of Macedonia page: 128)

Interest rate

Interest rates on denar deposits of households

2011 (Jan.)

2010

2009

2008

Sight deposits

0.3

0.3

1.1

1.0

Short - term time deposits

6.7

7.1

9.1

7.9

Long - term time deposits

9.3

9.6

10.7

9.1

(Source: Bank of Macedonia)

 

Money supply

Money Supply rate of growth, (%)

 

Q4 2010

Q4 2009

Currency in Circulation

-2.3

12.5

Demand money

1.6

7.5

Total short-term deposits

3.4

2.4

Total long-term deposits

8.1

24.2

(Source: Bank of Macedonia page:  48)

Government expenditure

In Q3 2010, government expenditure increased by 6.85% over Q2 2010.

Macedonia Expenditure

 

(Source: Bank of Macedonia page:  83)

Public and private debt

Public and private debt in 2010 (until September) was USD 1,372.10 million and USD 2,658.02 million respectively.

Macedonia Public debt and private debt

 

(Source: Bank of Macedonia page: 122)

Official exchange rate

MKD/USD official exchange rate was at its highest at 49.29 in 2005 andat its lowest at 41.86 in 2008.

Macedonia Exchange rate

 

(Source: Bank of Macedonia page:  126)

Government finances

Fiscal balance

The fiscal deficit for Q3 2010 was MKD -510 million.

Macedonia Fiscal balance

 

(Source: Bank of Macedonia page:  83)

Total revenue

Total revenue increased between Q1 2010 and Q3 2010. Macedonia's total revenue reached a maximum in Q3 2008 i.e. 37,073.

Macedonia Total revenue

 

(Source: Bank of Macedonia page: 83)

Tax revenue

Tax revenue increased between Q1 2010 and Q3 2010. Macedonia’s tax revenue reached a maximum in Q3 2008 i.e. 19,658.

Macedonia Tax revenue

 

(Source: Bank of Macedonia page: 83)

Current account balance

The current account balance in Macedonia was in surplus of 1.2 % of the nation’s GDP in Q3 2010.

Macedonia Current account balance

 

Source: Bank of Macedonia page:  30)

Balance of payments

Balance of payments (USD million)

 

2010

2009

2008

2007

Current account

-33.2

-449.3

-862.2

-421.2

Capital and Financial account

30.5

426.0

862.5

454.0

Errors and Omissions

2.7

23.2

-0.3

-32.8

(Source: Bank of Macedonia page: 107)

[Top] Labour Force and Employment Overview

Labour force

Macedonia'slabour force reached its highest level in 2009 i.e. 928,775.

Macedonia Labour force

 

(Source: National Statistics page 30)

Unemployment rate

The unemployment rate in Macedonia declined steadily from 37.3% in 2005 to 31.7% in 2010 (till Q3).

Macedonia Unemployment rate

 

(Source: National Statistics page 54, National Statistics)

Level of unionisation

The main labour welfare unions in Macedonia are the Federation of Trade Unions of Macedonia (SSM). It consists of 18 affiliated public sector unions.

(Source: fedee)

[Top] Political Stability

Government stability

Macedonia has a parliamentary democracy as a form of government. Macedonia's powers of government are divided into three departments which are the legislature, the executive and the judiciary.

(Source: mfa)

Regulatory environment

Macedonia is ranked 55th freest country on the 2011 Index of Economic Index and its economic freedom score is 66.

Macedonia Economic Freedom Indices

 

(Source: heritage.org)

Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Macedonia is ranked 62nd on the index indicating low levels of corruption in public departments.

Macedonia's CPI ranking moved from 71st in 2009 to 62nd in 2010 with a score of 4.1 and confidence range of 3.4 to 4.2.

(Source: transparency.org, transparency.org)

 

Freedom of information

The World Press Freedom Index 2010 ranks Macedonia at 68th position with a score of 18.40, indicating that the media is not very restricted. Macedonia's media is highly regionalised and newspapers are privately owned.

 

The main news papers in Macedonia are:

·         Nova Makedonija

·         Utrinski Vesnik

·         Dnevnik

·         Vreme

·         Vecer

·         Vest

·         Fakti

·         Forum

·         Aktuel

(Source: BBC, rsf)

Judicial system

Macedonia's judicial system is autonomous and independent. There are 27 first instance courts, 3 appeal courts and a supreme court. The Supreme Court is the highest level court, ensuring uniformity of law and its enforcements by the court. The judiciary prohibits the formation of political organisations and related activities.

(Source: Setimes-Macedonia)

[Top] Demographic Overview

The total population of Macedonia in 2010 was 2,072,086, increasing at a rate of approximately 0.94% over 2009.

(Source: internetworldstats, statpage: 11)

In 2009, men accounted for 50.11% of the total population and women accounted for 49.88% of the total population.

(Source: National Statistics page 11)

Macedonia Population by gender

 

In 2009, the mortality rate in Macedonia was 9.3 (per ‘000) and the birth rate was 11.5 (per thousand). Life expectancy at birth in Macedonia for males is 73 years and for is 77 years for females.

(Source: National Statisticspage 12, BBC)

In 2009, Macedonia's population below the age of 14 years accounted for 18%, whereas people in the age group of 65 years and above made up 12%.

(Source: worldbank, worldbank)

In 2010, 59.3 % of the population was classified as urban. In 2009 Macedonia's rural population was 0.66 million and its urban population was 1.37 million.

(Source: undppage: 194, worldbank, worldbank)

Macedonia ranked 71st out of 169 countries on the Human Development index 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education).

(Source: undppage: 138)

[Top] Soft Infrastructure

Education/literacy rate

Macedonia's literacy rate in 2010 was 97.4%.

(Source: undp)

Education system

The following chart shows the education system in Macedonia.

Educational System (2009/2010)

 

Number of schools

Number of Students

Number of girls

Number of boys

Primary and lower secondary education

1,046

211,857

102,268

109,589

Upper secondary education

117

96,311

46,261

50,050

Tertiary education

-

63,437

33,593

29,844

(Source: National Statistics page 19)

Healthcare resources

The healthcare system in Macedonia is delivered through various institutions. The system consists of three levels

·         Primary: includes healthcare stations and centers

·         Secondary: consists of speciality consultation and inpatient departments

·         Tertiary: includes university clinics and institutes, carrying out research and educational activities

·         Preventive health care organizes operating through a network of 1 national institute and 10 public health centers that are regionally located.

The healthcare system is funded by social contributions deducted from salaries of people in employment. In 2010, health care contributions were deducted at a rate of 7.3% from gross salaries.

The efficiency of the healthcare system in Macedonia makes healthcare services available for almost 90% citizens within 30 minutes.

Rural areas in Macedonia are served only with general medical services.

There are 9 major hospitals in Macedonia located in Skopje, Macedonia.

 (Source: Feaa.ucv, nispa.org, allianzworldwidecare)

[Top] Hard Infrastructure

Roads

The main mode of public transport in Macedonia are railway, road and air travel. The roadway length in Macedonia is 20,000 km. The main types of roads in Macedonia are motorways and highways, with a road network consisting of asphalted roads, main dirt roads and other dirt roads.

(Source:travel2macedonia)

Railways

The railway services across Macedonia has not been developed in the past 30 years. Railways in Macedonia are slower compared to other types of transport. There are more than 900 km of railway lines in Macedonia, of which 315 km are electrified.

(Source:travel2macedonia)

Airports

There are two airports in Macedonia which are as follows:

 

Town

Airport name

Runway length (ft.)

Ohrid

Ohrid

8,300

Skopje

Skopje

8,000

(Source:aircraft-charter-world)

Telecommunications networks

In 2010, the total number of internet users was estimated at 1,057,400, an increase of approximately 169.28% over 2006 i.e. 392,671. In 2009, there were 1,943,216 mobile phone subscribers.

Macedonia Penetration

 

Mobile phone subscriptions and fixed telephone lines

 

Mobile cellular subscriptions

Fixed telephone lines

2009

13,184,308

282,070

2008

10,449,036

356,502

2007

7,467,708

247,573

2006

4,065,421

270,573

2005

2,349,439

258,515

(Source:internetworldstats, ITU, ITU).

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