Macedonia : economy statistics and industry reports

An absence of infrastructure, UN sanctions on the downsized Yugoslavia, and a Greek economic embargo over a dispute about the country's constitutional name and flag hindered economic growth until 1996.

Since then, Macedonia has maintained macroeconomic stability with low inflation, but it has so far lagged the region in attracting foreign investment and creating jobs, despite making extensive fiscal and business sector reforms.

Official unemployment remains high at 31.

7%, but may be overstated based on the existence of an extensive gray market, estimated to be more than 20% of GDP, that is not captured by official statistics.

In the wake of the global economic downturn, Macedonia has experienced decreased foreign direct investment, lowered credit, and a large trade deficit.

However, as a result of conservative fiscal policies and a sound financial system, in 2010 the country received slightly improved credit ratings.

Macroeconomic stability also was maintained by a prudent monetary policy, which kept the domestic currency at the pegged level against the euro, while interest rates were falling.

As a result, GDP growth was modest, but positive, in 2010.