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Economy and Banking Sector of Macedonia

Southeastern Europe
Population  (2017)
2 073 702  (0.00%)
EU Status
not a member, candidate since 2004
MKD (Macedonian denar)
Nominal GDP (2016)
9.9 bln EUR  (+0.08%)
Credit Ratings (as of Sep 2016)
Consolidated Banking Assets
Deposit Guarantee
30 000 EUR
Number of Banks

Macedonia (officially the Republic of Macedonia) is a country in Southeastern Europe (Balkan peninsula). Macedonia is a candidate for joining the European Union since 2004.

Main sectors of Macedonian economy are manufacturing (including mining and construction), trade, transportation, accommodation and agriculture.

Macedonian banking sector is highly concentrated and is dominated by foreign-controlled banks. Most of the banks in Macedonia operate as universal banks.

List of Banks in Macedonia

National Currency

Macedonian Denar (MKD)


Nominal GDP (2016)Nominal GDP per Capita (2014)Real GDP Growth (2016)
9.9 bln EUR  (+0.08%)4 100 EUR  (+0.05%)2.4 %  (2015: 3.7 %)

According to Eurostat, nominal GDP of Macedonia in 2016 was 9.9 bln EUR.

Macedonia outperforms the European Union in terms of real GDP growth with the average annual differential coming to 1.5% over the past 10 years (2006 - 2016). In 2016 real GDP growth was 2.4% which was above the Euro Area average (1.8%) and above the European Union average (1.9%). Real GDP growth in 2017 - 2022 are IMF's estimates.

Real GDP Growth in Macedonia.

Chart 1. Real GDP Growth in Macedonia. Source: Eurostat, International Monetary Fund.

In 2014, nominal GDP per capita in Macedonia was 4 100 EUR.

Macedonia has a below-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, fell behind that of the European Union by -54.1% over the past 10 years (2004 - 2014). GDP per capita at PPP in 2015 - 2022 are IMF's estimates.

GDP Per Capita at Purchasing Power Parity in  Macedonia; European Union = 100.

Chart 2. GDP Per Capita at Purchasing Power Parity in Macedonia; European Union = 100.

Inflation Rate

CPI, Year Average (2016)
-0.2 %  (2015: -0.3 %)

According to , inflation rate in Macedonia in 2016 expressed as annual percentages of average consumer prices was -0.2% which was below the Euro Area average (0.2%) and below the European Union average (0.3%). Inflation rates in 2017 - 2022 are IMF's estimates.

Inflation Rate in Macedonia.

Chart 3. Inflation Rate in Macedonia. Source: International Monetary Fund.

Unemployment Rate

Unemployment Rate (2016)
23.6 %  (2015: 26.1 %)

Credit Ratings (as of Sep 2016)

Fitch Moody's
BB (speculative), outlook negative -

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Macedonia: 27 Signed Agreements

Macedonia signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):

 Czech Republic
 Luxembourg (Jul 2013)
 United Kingdom

There are also several agreements between Macedonia and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 1 January 2013 of signing the agreement is given in brackets):


Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Automatic Exchange: No Commitment to Start

Macedonia didn't sign the automatic information exchange agreement and didn't indicate a timeline of the start of the automatic information exchange.

Automatic Excnange: 0 Bilateral Agreements to Receive Information

Macedonia has not singed any bilateral agreements to automatically receive information.

Automatic Excnange: 0 Bilateral Agreements to Send Information

Macedonia has not singed any bilateral agreements to automatically send information.

Further Information


Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Macedonia

Although there is no IGA between Macedonia and the United States, banking and financial entities operating in Macedonia have reached the agreement with the IRS to participate in FATCA on an individual basis.

Further Information

Financial Market Development

Financial Market Development
4.2 (max 7.0), 57th out of 138 countries
Banks' Soundness
5.3 (max 7.0), 52nd out of 138 countries

According to World Economic Forum's Global Competitiveness Report 2016-2017, financial market development in Macedonia is scored 4.2 out of maximum 7.0 and ranked 57th out of 138 analysed economies, trustworthiness and confidence of financial market is scored 4.5 (46th place).

Financial Market Development in Macedonia.

Chart 4. Financial Market Development in Macedonia. Source: WEF.

Soundness of banks is scored 5.3 bringing Macedonia into the 52nd place.

Soundness of Banks in Macedonia.

Chart 5. Soundness of Banks in Macedonia. Source: WEF.

Further Information

Deposit Guarantee Scheme

Maximum Protected Amount
30 000 EUR

Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.

From a depositor's point of view it is important to know:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Macedonia are summarised in Table 1.

Scheme Participantsall credit institutions operating in Macedonia (including branches of foreign banks), branches of Macedonian banks abroad
Eligible Depositorsnatural persons
Covered Accountsall deposit accounts
Covered Currenciesall
Maximum Protected Amount30 000 EUR
Paid In CurrencyMKD

Table 1. Deposit guarantee scheme in Macedonia.

Further Information

Banking Sector Structure

Number of Banks

Currently there are 16 credit institutions operating in Macedonia.

All the credit institutions operating in Macedonia can be classified into several categories. Table 2 summarises the number of banks in each category.

CategoryNumber of Banks
Central banks1

Table 2. Number of banks by category in Macedonia.