Republic of Macedonia: country overview
16 August 2012by Ina Dimireva -- last modified 26 January 2017
The former Yugoslav Republic of Macedonia – along with other Western Balkans countries – was identified as a potential candidate for EU membership during the Thessaloniki European CouncilSearch for available translations of the preceding link••• summit in 2003. The former Yugoslav Republic of Macedonia applied for EU membership in March 2004. The Commission issued a favourable opinion in November 2005, and the Council decided in December 2005 to grant the country candidate status. In October 2009, the Commission recommended that accession negotiations be opened.
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Member of Schengen area: No
Political system: Republic
Capital city: Skopje
Total area: 25 433 km²
Population: 2.05 million
Currency: denar
Country overview
The former Yugoslav Republic of Macedonia – along with other Western Balkans countries – was identified as a potential candidate for EU membership during the Thessaloniki European Council summit in 2003.
The former Yugoslav Republic of Macedonia applied for EU membership in March 2004. The Commission issued a favourable opinion in November 2005, and the Council decided in December 2005 to grant the country candidate status. In October 2009, the Commission recommended that accession negotiations be opened.
Economy overview
Since its independence in 1991, Macedonia has made progress in liberalizing its economy and improving its business environment, but has lagged the Balkan region in attracting foreign investment. Corruption and weak rule of law remain significant problems. Some businesses complain of opaque regulations and unequal enforcement of the law.
Macedonia's economy is closely linked to Europe as a customer for exports and source of investment, and has suffered as a result of prolonged weakness in the euro zone. Unemployment has remained consistently high at about 30% since 2008, but may be overstated based on the existence of an extensive gray market, estimated to be between 20% and 45% of GDP, which is not captured by official statistics.
Macedonia maintained macroeconomic stability through the global financial crisis by conducting prudent monetary policy, which keeps the domestic currency pegged against the euro, and by limiting fiscal deficits. The government has been loosening fiscal policy, however, and the budget deficit was 4.2% of GDP in both 2013 and 2014, gradually falling to 3.7% in 2015. By yearend 2015, public debt was 40.3%, which although low by regional comparison, is significant for a small economy.
Source: Europa, CIA - The World Factbook
Useful links
Delegation of the EU to the former Yugoslav Republic of Macedonia
Source: Europa