Economy of The Republic of Macedonia - Economic Activity

Economic Activity

Macedonia is vulnerable to economic developments in Europe - due to strong banking and trade ties - 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 the Socialist Federal Republic 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 31.2%, but may be overstated based on the existence of an extensive gray market, estimated to be between 20% and 45% 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 availability, and a large trade deficit. However, as a result of conservative fiscal policies and a sound financial system, in 2010 the country credit rating improved slightly to BB+ and was kept at that level in 2011. Macroeconomic stability has been maintained by a prudent monetary policy, which keeps the domestic currency pegged against the euro. As a result, GDP growth was modest, but positive, in 2010 and 2011, and inflation was under control.

Read more about this topic:  Economy Of The Republic Of Macedonia

Other articles related to "economic activity, economic":

Lagunillas, Michoacán - Economic Activities
... It represents 40% of economic activity ... Cattle farming represents of economic activity ... manufacture industries that represents 10% of economic activities ...
Circular Flow Of Income - Five Sector Model
... into the circular flow of income is the Government Sector that consists of the economic activities of local, state and federal governments ... a recession or contraction in the overall economic activity ... will rise causing a boom or expansion in economic activity ...
Treasury View - History
... and would not affect the total flow of economic activity ... Therefore, neither government spending nor tax cuts could boost employment and economic activity ... and Money, provided a theoretical foundation for how fiscal stimulus can increase economic activity during recessions ...
Economic Impact Of Illegal Immigrants In The United States - Economic Benefits of Illegal Immigrants - Consumer Demand
... Economic activity produced by illegal immigrant spending employs about 5% of the total US workforce ... UCLA research indicates immigrants produce $150 billion of economic activity equivalent to spending stimulus every year ... Economic decline caused by reduced spending by illegal immigrants in the US occurred at the same time as a rise in unemployment of approximately 1 million legal US ...

Famous quotes containing the words activity and/or economic:

    History does nothing; it does not possess immense riches, it does not fight battles. It is men, real, living, who do all this.... It is not “history” which uses men as a means of achieving—as if it were an individual person—its own ends. History is nothing but the activity of men in pursuit of their ends.
    Karl Marx (1818–1883)

    It does not follow, because our difficulties are stupendous, because there are some souls timorous enough to doubt the validity and effectiveness of our ideals and our system, that we must turn to a state controlled or state directed social or economic system in order to cure our troubles.
    Herbert Hoover (1874–1964)