The Economic Activity of Macedonia

The Republic of Macedonia is a small and open Economy. Although this is the case, the economy of Macedonia is vulnerable to economic developments with respect to other European countries. The economy of Macedonia is dependent on the progress and regional integration inclining towards EU membership for progressing economic growth.

At the end of former Yugoslavian colonization, the independence of the Republic of Macedonia in the year 1991, they have developed a mere 5% from the total Yugoslavian’s output of goods and services.

The country’s GDP significantly rose each year from the Independence Day up to 2000. In the year 2001, civil war within the country lowered the GDP to about 4.5%. But the shrinking of the economy is eventually followed by an increase of GDP at about 4% growth during the years of 2003 to 2006. The economic growth was followed by 5% per year in the year 2007 to 2008. Macedonian economy gains macroeconomic stability against low inflation. The existence of intensive gray market raised the economy’s GDP at about 20%.

The countries main source of income is through agricultural and industrial production. The agriculture of Macedonia produces grapes, wine, tobacco, vegetables, fruits, milk and eggs. The industries of Macedonia operate food processing, manufactures beverages, textiles, iron, steel, cement, energy, and pharmaceutical equipments. These products are export quality, one source of income, and used also within the country.

The country’s currency is Macedonia Dinar (MKD) and has an exchange rate of 1USD = 46 MKD as of April 9, 2010.