NORTH MACEDONIA
Country risk rating
C2
MEDIUM RISK for enterprise
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Economic risk
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Business environment risk
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Political risk
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Commercial risk
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Financing risk
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| GDP | USD12.67bn (World ranking 133, World Bank 2018) |
| Population | 2.08mn (World ranking 146, World Bank 2018) |
| Form of state | Parliamentory Democracy |
| Head of government | Zoran Zaev (Prime Minister) |
| Next elections | 2020, legislative |
- Fairly good relations with the EU, including much improved relations with neighboring Greece after the agreement on the country’s new name “North Macedonia”
- Solid monetary policy, track record of low inflation
- Relatively prudent fiscal policy
- Pro-business stance of the government to attract foreign investment, including low tax rates, easy processes to start a business and get credit
- Underlying ethnic tensions
- Slow economic reform progress, often due to weak majorities in parliament
- High external debt burden, including arrears
- Moderate level of foreign exchange reserves, insufficient to cover all external debt payments due within one year
- Very high unemployment
- Weak rule of law and significant level of perceived corruption
- Underdeveloped road and rail infrastructure
Contact
Euler Hermes
Economic Research Team
research@eulerhermes.com