Economic Overview
At independence in september 1991, macedonia was the least developed of the yugoslav republics, producing a mere 5% of the total federal output of goods and services. the collapse of yugoslavia ended transfer payments from the central government and eliminated advantages from inclusion in a de facto free trade area. 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. gdp subsequently rose each year through 2000. in 2001, during a civil conflict, the economy shrank 4.5% because of decreased trade, intermittent border closures, increased deficit spending on security needs, and investor uncertainty. growth barely recovered in 2002 to 0.9%, then averaged 4% per year during 2003-07, expanding to 5.1% in 2007. 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 nearly 35%, but may be overstated based on the existence of an extensive gray market, estimated to be more than 20 percent of gdp, that is not captured by official statistics.
Environmental Issues
Air pollution from metallurgical plants
Government Type
Parliamentary democracy
Population
2,061,315 (july 2008 est.)
Location
Southeastern europe, north of greece
Area
Total: 25,333 sq km
land: 24,856 sq km
water: 477 sq km
Slightly larger than vermont
Country Aliases
Conventional long form: republic of macedonia
conventional short form: macedonia
local long form: republika makedonija
local short form: makedonija
note: the provisional designation used by the un, eu, and nato is the former yugoslav republic of macedonia (fyrom)
former: people's republic of macedonia, socialist republic of macedonia
Capital
Name: skopje
geographic coordinates: 42 00 n, 21 26 e
time difference: utc+1 (6 hours ahead of washington, dc during standard time)
daylight saving time: +1hr, begins last sunday in march; ends last sunday in october
Military Service
18 years of age for voluntary military service (2007)
International Disputes
Kosovo and macedonia completed demarcation of their boundary in september 2008; greece continues to reject the use of the name macedonia or republic of macedonia
Sources: Central Intelligence Agency (CIA)
