Capital City: Skopje
	It is %T:%M %A in Skopje

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Economic trends

Macedonia is the poorest of the former Yugoslavian republics having a small economy with a gross domestic product (GDP) of about USD 6 billion, representing less than 0.01% of the total global GDP. Macedonia has been experiencing stable growth since 2002. The GDP growth rate was 3% in 2006 and 5% in 2007. Thanks to this sustained growth, Macedonia has been able to impose budgetary discipline which has led to streamlining of its public spending. IMF forecasts a growth rate of 5% in 2008. Like most transition economies, problems persist even as Macedonia is moving ahead with its reforms programme. A largely industrial infrastructure inherited from Yugoslavia has not seen much investment. Though the country has well skilled and competitive labour force but job opportunities are inadequate. The official unemployment rate is more than 35%. However inflation is under control at less than 2% in 2007. Macedonia is expected join the EU in 2010. Macedonia has substantial un-official economy equal to nearly 35% of its GDP.

Main branches of industry

Macedonia has largely agricultural economy. Agriculture represents 12% of its GDP and employs 15% of the active population. It mainly produces rice, cotton, tobacco and fruits. Sheep and goats are also raised. There are few deposits of iron, copper, and lead in the country. Manufacturing includes chemicals, steel, machinery, and textiles. The textile & clothing sector is particularly important because it creates many jobs. The manufacturing and mining sectors together contribute nearly 30% to GDP. The services sector contributes around 60% to GDP; thanks mainly to transport, telecommunications and energy generation.

International trade

Macedonia is an open economy, highly integrated to international trade, with a total trade-to-GDP ratio of 107%. It became a member of WTO (World Trade Organization) in April 2003. Following a 1997 cooperation agreement with the EU, Macedonia signed a Stabilization and Association Agreement with the EU in April 2001, giving Macedonia duty-free access to European markets. Macedonia’s top three export partners are: Serbia-Montenegro, Germany and Greece. Macedonia mainly exports clothes & textiles, iron & steel, footwear and tobacco. The top three import partners are: Germany, Greece and Russia. It mainly imports hydrocarbons, iron and steel, machinery, and food products.