Market research Macedonia

PMR Research is a specialised custom market research unit of PMR Ltd., a British-American company based in Poland. We offer a wide range of research services in Central and Eastern Europe for companies interested in business over the countries in the region.

Research services provided by PMR Research in Macedonia include:

brand and company image studies
research on customer preferences, their satisfaction and their purchasing habits
product concept tests
usage & attitude studies
internet surveys
quantitative surveys - telephone, CATI, face-to-face
qualitative research - focus groups, IDIs
industry analyses (comprehensive analyses of given market sectors performed using PMR's proprietary methodology PMR MarketInsight)
preparation of databases
fieldwork services

Why to invest?

EU candidate state
Increasing stability
Stable GDP growth rate
Low inflation
Well educated and skilled workforce
Geographical location and well developed infrastructure
One of the lowest taxes in Europe – 10% both for corporate and personal profits
Relaxed legal requirements
Big pool of labour force
Relatively low employment costs
From 2009 onwards, social contributions will be cut
Increase in public investment projects from 3% to 6% of GDP

Business and economical environment

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. Exacerbated by the UN sanctions imposed on the downsized Yugoslavia, one of its largest markets, and a Greek economic embargo over a dispute about the country's constitutional name and flag, the lack of economic growth continued until 1996, when growth started to pick up and this trend continued until 2001 when the economy suddenly shrank because of civil unrest caused by Albanian insurgents. However, closer relations between Macedonia and the European Union, as well as the strong commitment of the Government to implement necessary structural reforms, has given an impetus to economic growth in the recent years as the average GDP growth rate in the 2004-2008 period recorded 4.6% per annum average (compared with only 1.55% in the 2000-2004). However, as the country is not immune from the global economical problems the current forecasts assume GDP to decrease by 2% in 2009 but than to start growing again gradually. From the production side, the main contributors to this projected growth will be industry and services, whereas on the expenditure side, growth will be driven by exports and investments.

The business environment in Macedonia is favourable in terms of paying taxes. Macedonia has relatively low tax rates – 10%. Compared to the region, FDI inflow in Macedonia has been relatively low. With only 39 EUR FDI per capita in 2005, Macedonia hit the bottom of the list of the CEE countries. The total accumulated amount of investments until the end of 2005 in Macedonia was slightly over EUR 1 bn. In 2006, the FDI inflow in the country was around EUR 350m but in the 2007 has increased to EUR 470 mn, while the last year it has reached EUR 420 mln. The main source of these investments was the privatization of state enterprises sold in international auctions and a few greenfield investments.

The biggest foreign investments in Macedonia were located in the telecommunication sector, the energy sector, the refinery industry, cement production, the steel industry and mining. Among the biggest investors are companies such as: Matav, Johnson Controls, EVN, Titan, Hellenic Petroleum and others. The sectors that are considered to have big potential for attracting FDI include: finished textile and leather goods; shoe production; fruit and vegetable growing; lamb meat; processed food and packaging; wines; tobacco and cigarettes; tourism; steel and metal fabrication; chemical and pharmaceutical industry; vehicle and bus assembly; electrical equipment and electric motors, construction, infrastructure, banking, telecommunications and other service activities.

The inflation rate in Republic of Macedonia declined substantially in at the beginning of this decade, from 350% in 1993 to 2.3% in 2007 but faced increase again with 8.3% reached in 2008.

According to many experts, unemployment is considered the biggest problem of the Macedonian economy. The official unemployment rate of the country by ILO standards was 33% in 2008. Due to the presence of the grey economy in the country, it is believed that the real percentage is slightly lower than the official i.e. between 25-30%, but still, it is on a very high level and without a tendency of dropping down significantly.

Imports measured in EUR bn reached the level of 2.82bn in 2008, while, exports were recorded at EUR 4.86bn growing by 23% and 36% respectively but resulting in the unfavourable trade balance is for Republic of Macedonia.

Infrastructure and technological environment

The communication system in Macedonia is a road network of 9,205 km in length for road transport services, and a railway network consisting of over 900 km. The telecommunications landline system is extensive. More than two-thirds of the lines are residential; however telephone service is also available in most villages. There were 1.417 million (2006) mobile phone users and around 490,900 (2006) main lines in use. Internet usage is still at a low level. According to the latest survey data, around 35% of the population uses the Internet on a daily basis.

Social environment

The population of Republic of Macedonia is 2m people and the current ethnical structure of the society in Republic of Macedonia is stable, with the majority of ethnic Macedonians and Albanians being the biggest minority with their number exceeding 24% of the population. Other ethnic groups in Republic of Macedonia are Turks, Roma and Serbs. The official language is Macedonian.

The Macedonian education system consists of pre-school education, primary education, secondary education and higher education. There are four state universities: Ss. Cyril and Methodius University of Skopje, St. Clement of Ohrid University of Bitola, State University of Tetovo and Goce Delchev University of Shtip. There is also number of private university institutions. What is worth mentioning is that United States Agency for International Development introduced a project called "Macedonia Connects" that made Macedonia the first all-broadband wireless country in the world. According to the Ministry of Education and Sciences there are 461 schools (both primary and secondary) with access to the internet.

Political environment

Since 1945 Macedonia had been a republic within federal Yugoslavia and on September 8, 1991, following a referendum within its citizens, Macedonia was proclaimed a sovereign and independent state. The Republic of Macedonia is a parliamentary democracy with an executive government composed of a coalition of parties from the unicameral legislature and an independent judicial branch with a constitutional court. The Assembly consists of 120 seats with election in every four years. The role of the President of the Republic is mostly ceremonial, with the real power resting in the hands of the President of the Government. The President of the Republic is elected every five years and he or she can be elected twice at most. The current President is Branko Crvenkovski.

The country is a member of the World Trade Organization (WTO), and the Organization for Security and Cooperation in Europe. The Republic of Macedonia is a candidate for NATO and the European Union structures. Administratively The Republic is divided onto 8 regions and 83 municipalities.

General data

Area: 25,713 sq km
Population: 2.05m (2008)
Capital city: Skopje
Language: Macedonian
Ethnic groups: Serbia and Kosovo to the north, Albania to the West, Greece to the south and Bulgaria to the east
Land boundaries: Macedonians (64.18%), Albanians (25.17%), Turks (3.85%), Roma (2.66%), Serbs (1.78%), and others

Major economic indicators

	2006	2007	2008	2009f	2010f
GDP (EUR bn)	5.28	5.77	6.62
Population (mn)	2.043	2.049	2.055
GDP per capita (EUR)	2,584	2,816	3,221
GDP (constant prices y-o-y %)	40	5.9	5.0
Exports, real, y-o-y (%)	6	25	23
Imports, real, y-o-y (%)	5	24	36
CPI (average, y-o-y %)	3.2	2.3	8.3
Central bank reference rate	10.7	9.9	9.8
Monthly wage, nominal (EUR)	391	414	490
Unemployment rate (%)	36.0	34.9	33.0
Net FDI (EUR bn)	0.32	0.47	0.42
FDI % GDP	6.1	8.1	6.3
FX reserves (EUR bn)	1.42	1.52
Exchange rate to USD AVG	48.79	44.72	41.86
Exchange rate to EUR AVG	61.19	61.18	61.27

Last update: Q2 2009

Useful data

Currency: Macedonian Denar (MKD)
Time zone: CET, CEST
Area code: +389

If you would like to find out more on the Macedonian market opportunities please do not hesitate to contact us directly:
phone: (48 12) 618 90 80
faks (48 12) 618 90 08
e-mail: [email protected]

PMR Business Solutions in Macedonia

Macedonia market reports
To purchase or find detailed information on PMR Publications reports covering the general economy, construction, retail, pharmaceutical, and ICT sectors in Macedonia.

If you are looking for greater detail trust our research and consulting divisions to carry out projects tailored to your business needs.

Macedonia market research
PMR Research offers a full array of qualitative and quantitative research methodologies, providing services such as customer satisfaction studies, brand awareness and brand image research, distribution and competition studies, segmentation and sector analyses.

Macedonia consulting
PMR Consulting offers a wide range of consulting services in Central and Eastern Europe for foreign companies interested in the region. The typical projects include: competitive intelligence, sourcing, strategic advisory, consulting at foreign direct investments and mergers & acquisitions.