Email this Link Email this Link Print this Snapshot Print Snapshot

Export this Snapshot Export Snapshot to PDF
Country Snapshot - Macedonia, FYR  

HighlightsRankingsQuantitative DataLegislationAnalytical WorkProject Portfolio
  • Eastern Europe & Central Asia
  • Upper middle income
  • 2,060,563 (2011)
  • 4,520
Macedonia, FYR Flag
Below are select highlights for the data included in the profile.

  1. FYR Macedonia is ranked 38th out of 183 economies in Doing Business 2011 (DB 2011) report, recording a slight decline compared to last year. FYR Macedonia has been a busy reformer in the past several years. DB 2011 reports that the country made it easier to start a business by further improving its one-stop shop, and lowered tax costs for businesses by requiring that corporate income tax be paid only on distributed profits.
  2. According to the latest Enterprise Surveys (2009), the top constraints to investment in FYR Macedonia include Practices of the Informal Sector and Access to Finance. Among the firms surveyed, 73.89% of them report competing against unregistered or informal firms, compared to the regional average of 44.67%. Though 61.08% of firms report having a line of credit or loans from financial institutions, the value of collateral needed for a loan is 175.93%, higher than the regional average of 133.05%.
  3. According to the Investing Across Borders Indicators, the former Yugoslav Republic of Macedonia has opened up the majority of the sectors of its economy to foreign investors. As a notable exception, legal ownership restrictions still exist in the domestic and international air transportation industries. As in most other countries in Eastern Europe and Central Asia, legislation in FYR Macedonia limits foreign ownership in these sectors to a maximum of 49%. A number of business sectors, such as electricity transmission, railway freight transportation, airport operation, and waste management, are still dominated by publicly owned enterprises. Those monopolies, together with a high perceived difficulty of obtaining required operating licenses, make it difficult for foreign companies to engage in these sectors.
  4. Macedonia’s economic freedom score is 66, making its economy the 55th freest in the 2011 Index. Its overall score has increased 0.3 point from last year, reflecting improvements in freedom from corruption and monetary freedom. Macedonia is ranked 23rd out of 43 countries in the Europe region, and its overall score is above the world average. Macedonia has undertaken significant reforms in many aspects of its economy over the past few years, inspiring economic growth and the development of a thriving entrepreneurial sector.

Subnational Doing Business Report

Doing Business in South East Europe 2008 compares business regulations across 7 economies (Albania, Bosnia and Herzegovina, Croatia, Kosovo,* the former Yugoslav Republic of Macedonia, Montenegro, and Serbia) in 4 key areas: starting a business, dealing with licenses, registering property, and enforcing contracts. The study provides comparable data for 22 cities that can inspire reforms at the national and local level and add to the reform momentum of the region.

* Under UN Security Council Resolution 1244 (1999), Kosovo was administered by the United Nations Interim Administration Mission in Kosovo (UNMIK).

Main Findings

  • If one city were to adopt all the best existing practices in South East Europe, it would rank 9th among the 178 economies measured by Doing Business 2008, similar to Ireland and Canada.
  • Overall, Bitola (Macedonia, FYR) was the easiest city for doing business.
  • Construction licenses were costly throughout South East Europe, averaging 1,427% of income per capita—higher than in most regions of the world and in many new European Union member countries.

Download report
Ranking simulator
Economy ranking