UN-OHRLLS :: Macedonia, Former Yoguslav Republic of

Macedonia, Former Yoguslav Republic of

Location:Southeastern Europe

Capital: Skopje

Population (2011): 2,077,328

Surface area: 25,713 sq km

Currency: Macedonian Denar

GDP per capita (2009): US $ 4,662

Historical background:

Macedonia gained its independence peacefully from Yugoslavia in 1991. Greece's objection to the new state's use of what it considered a Hellenic name and symbols delayed international recognition, which occurred under the provisional designation of "the Former Yugoslav Republic of Macedonia." In 1995, Greece lifted a 20-month trade embargo and the two countries agreed to normalize relations. The United States began referring to Macedonia by its constitutional name, Republic of Macedonia, in 2004 and negotiations continue between Greece and Macedonia to resolve the name issue. Some ethnic Albanians, angered by perceived political and economic inequities, launched an insurgency in 2001 that eventually won the support of the majority of Macedonia's Albanian population and led to the internationally-brokered Ohrid Framework Agreement, which ended the fighting by establishing a set of new laws enhancing the rights of minorities. Fully implementing the Framework Agreement and stimulating economic growth and development continue to be challenges for Macedonia, although progress has been made on both fronts over the past several years.

Economy – overview:

Having a small, open economy makes Macedonia vulnerable to economic developments in Europe and dependent on regional integration and progress toward EU membership for continued economic growth. 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. 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.

Human Development Index ranking (2010): 71 out of 169

Net Official Development Assistance (2009): US $ 193 million

Top three donors of Gross Official Development Assistance (2008-2009 average):

EU Institutions, the United States, Japan

Total External Debt (2010): $5.821 billion

HIPC Position (2011): Not eligible

United Nations Membership date: 8 April 1993

New York Mission:

Address: Permanent Mission of the former Yugoslav Republic

of Macedonia to the United Nations

866 United Nations Plaza, Suite 517, New York, N.Y. 10017

Telephone: (212) 308-8504, -8723