The economic performance of the North Macedonian economy is expressed through stable GDP growth, low inflation rate of < 2 % on average in the past 10 years, fiscal discipline confirmed by the international financial institutions and a well-functioning coordination between fiscal and monetary policy.
2013: 1.4%; 2014: – 0.5%; 2015: – 0.4%; 2016: – 0.2%; 2017: 2.4%; 2018: 0.9%; 2019: 0.4%
Macedonian Denar pegged to the DM/€ for the last 20 years (€1= MKD 61.5)
North Macedonia has very sound financial system that is comprised of:
The banking system is based on the Banking Law and the National Bank Law.
The Banking Law (Official Gazette of Republic of North Macedonia, No. 67/2007) introduces liberalization in the banking sector regarding registration and operations. Banks in Republic of North Macedonia are established as joint stock companies with head offices in the Republic of North Macedonia, with initial capital of €5m in Denar equivalent.
Foreign banks may, through its branch in the Republic of North Macedonia, perform the financial activities listed under article 7 of the Banking Law, authorized to perform in the country of its head office. The foreign bank branch shall hold monetary assets in the amount of at least €2m in Denar equivalent. The National Bank of Republic of North Macedonia is the only authorized institution for bank licensing and bank supervision.
The Law on Leasing (Official Gazette of the Republic of North Macedonia, Nos. 4/2002, 49/2003, 13/2006 and 81/2008) regulates the financial leasing. The Ministry of Finance is authorized institution for issuing and revoking licenses for performing financial leasing, as well as for supervision of the Lessors of financial leasing.
Leasing companies are established according to the Company Law and around 90% of the capital is owned by foreign investors.
Insurance companies perform their activities in accordance with the Insurance Supervision Law- consolidated text (Official Gazette of the Republic of North Macedonia No. 30/2012), Decision of the Constitutional Court of the Republic of North Macedonia No. 202/2011 (Official Gazette of the Republic of North Macedonia No. 45/2012), Decision of the Constitutional Court of the Republic of North Macedonia No. 130/2011 (Official Gazette of the Republic of North Macedonia No. 60/2012), Decision of the Constitutional Court of Republic of North Macedonia No. 122/2011 (Official Gazette of the Republic of North Macedonia No. 64/2012), Decision of the Constitutional Court (Official Gazette No. 7/2012), the Compulsory Insurance in Traffic Law (Official Gazette of the Republic of North Macedonia No. 88/2005, 70/2006, 81/2008, 47/2011 and 135/2011), Decision of the Constitutional Court (Official Gazette No. 60/2012, Official Gazette 64/2012, Official Gazette No. 23/2013), Amending the Insurance Supervision Law ( Official Gazette No.188/2013, 112/2014, 153/2015, 192/2015, 23/2016).
These laws set the legal framework of establishment and performing life and non-life insurance and reinsurance operations, insurance intermediation (insurance brokerage companies and insurance agencies), insurance supervision and winding-up procedures of insurance and reinsurance undertakings established on the territory of the Republic of North Macedonia.