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The Republic of North Macedonia, an EU candidate country and a NATO member since March 2020, continues to be receptive to U.S. commercial investments. Higher energy prices, inflation, and a disrupted supply chain due to uncertainty created by Russia’s invasion of Ukraine hampered 2022 GDP growth. Despite government stimulus measures to assist recovery, GDP in 2022 only grew by 2.1 percent, 1.1 percentage points less than projected.  Government support also cushioned the impact of the crisis on the labor market, with unemployment falling to 14 percent in 2022.  In its Growth Acceleration Plan, the government set targets to double the average annual GDP growth rate from 2.5 percent to 5 percent in the period 2022-2026, create 156,000 new jobs, and reduce unemployment to 8.6 percent.  It also committed to “green growth” by accelerating the energy transition to carbon neutrality and reducing greenhouse gas emissions in accordance with the Declaration on Green Agenda signed November 2020.

While North Macedonia’s investment climate is generally attractive and the legal framework is largely in line with international standards, corruption is a consistent challenge. Large foreign companies operating in the Technological Industrial Development Zones (TIDZ) generally report positive investment experiences and maintain good relations with government officials. However, the country’s overall regulatory environment remains complex, and frequent regulatory and legislative changes, coupled with inconsistent interpretation of the rules, create an unpredictable business environment conducive to corruption. The government generally enforces laws, but there are numerous reports that some officials remain engaged in corrupt activities. Transparency International ranked North Macedonia 85th out of 180 countries in its Corruption Perceptions Index in 2022, one spot higher from the prior year, with a score of 40/100 in absolute terms.

The Office of the Deputy Prime Minister for Economic Affairs continues to coordinate government activities related to foreign investments.  The government made some efforts in 2022 to attract new investment in the midst of mitigating the effects of the energy crisis and inflation, including courting foreign companies and investors for public projects in transportation and energy infrastructure.  The State Commission for the Prevention of Corruption has opened several corruption-related inquiries, including several involving high-level officials, and the Deputy Prime Minister for Good Governance has focused on structural and procedural changes to reduce opportunities for corruption.

Fitch Ratings has reaffirmed North Macedonia’s previous credit rating of BB+ with a negative outlook, and Standard & Poor’s reaffirmed its credit rating at BB- with a stable outlook.

There are several areas to watch in 2023. In 2021, Embassy Skopje identified digitalization and green energy as areas ripe for U.S. investment due to the government’s growing commitment to invest in these strategic sectors. North Macedonia’s location at the crossroads of pan-European transport corridors VIII and X may facilitate “near-shoring” production in proximity to consumption centers in Europe as fallout from the pandemic and Russia’s invasion of Ukraine continue to snarl global supply chains.

Table 1: Key Metrics and Rankings

Measure Year Index/Rank Website Address
TI Corruption Perceptions Index 2022 85 of 180 
Global Innovation Index 2022 66 of 132 
U.S. FDI in partner country ($M USD, historical stock positions) 2021 USD 12 
World Bank GNI per capita 2021 USD 6,190 

Policies Towards Foreign Direct Investment

Attracting FDI remains one of the government’s main pillars of economic growth and job creation. There are no laws or practices that discriminate against foreign investors. In March 2018, the government passed its “Plan for Economic Growth” ( ), and in 2021 it amended the Law on Financial Support of Investments ( ), which provides substantial incentives to foreign companies operating in the 15 free economic zones. The incentives include a variety of measures such as job creation subsidies, capital investment subsidies, and financial support to exporters. North Macedonia is a signatory to multilateral conventions and bilateral treaties protecting foreign investors, though none with the United States.

Since August 2020, the office of the Deputy Prime Minister for Economic Affairs ( ) has coordinated the government’s activities related to foreign investments. Invest North Macedonia—the Agency for Foreign Investments and Export Promotion is the primary government institution in charge of facilitating foreign investments through the initial inquiry phase and through aftercare challenges. It works directly with potential foreign investors, provides detailed explanations and guidance for registering a business in North Macedonia, produces analysis on potential industries and sectors for investing, shares information on business regulations, and publishes reports about the domestic market. The North Macedonia Free Zones Authority (  ), a governmental managing body responsible for developing free economic zones throughout the country, also assists foreign investors interested in operating in the zones. It manages all administrative affairs of the free economic zones and assists foreign investors to identify appropriate investment locations and facilities.

The government maintains contact with large foreign investors through frequent meetings and formal surveys to solicit feedback. Foreign investors have direct and easy access to government leaders, whom they can contact for assistance to resolve issues. The Foreign Investors Council ( ) advocates for foreign investors and suggests ways to improve the business environment.

Limits on Foreign Control and Right to Private Ownership and Establishment

Foreign investors can invest directly in all industry and business sectors except those limited by law. For instance, investment in the production of weapons and pharmaceuticals remains subject to government approval, while investors in sectors such as banking, financial services, insurance, and energy must meet certain licensing requirements that apply equally to domestic and foreign investors. Foreign investment may be in the form of money, equipment, or raw materials. Under the law, if assets are nationalized, foreign investors have the right to receive the full market value of their investment.

North Macedonia does not currently have a formal national screening mechanism for foreign investments. However, Invest North Macedonia conducts screening and due diligence reviews of foreign direct investments in a non-standard, non-public procedure and on an ad-hoc basis under the Law on Trade Companies when a company pursues the registration process. The main purpose of this screening is to ensure the investment will bring economic benefits for the country and also to protect national security. U.S. investors are not disadvantaged or singled out by any of the ownership or control mechanisms, sector restrictions, or investment screening mechanisms.

Other Investment Policy Reviews

The World Trade Organization’s (WTO) latest review of North Macedonia’s trade policy (2019) is available at . The most recent United Nations Conference on Trade and Development (UNCTAD) investment policy review on North Macedonia, from March 2012, is available at . A 2017 regional investment policy review of South-East Europe covering seven economies, including North Macedonia, is available at . The Organization for Economic Cooperation and Development (OECD) has not conducted an investment policy review on North Macedonia to date. The International Monetary Fund (IMF) and the World Bank have mentioned aspects of the government’s policies for attracting foreign investment in their regular country reports but have not provided specific policy recommendations.

Business Facilitation

All legal entities in the country must register with the Central Registry of the Republic of North Macedonia (Central Registry). Foreign businesses may register a limited liability company, single member limited liability company, joint venture, or joint stock company, as well as branches and representative offices. There is a “one-stop-shop” system which enables investors to register their businesses within a day by visiting one office, obtaining the information from a single place, and addressing one employee. Once the company is registered with the Central Registry, the registration is valid for all other agencies. In addition to registering, some businesses must obtain additional working licenses or permits for their activities from relevant authorities. More information on business registration documentation and procedures is available at the Invest North Macedonia website ( as well as the Central Registry’s website ( ). All investors may register a company online at . Applications must be submitted by an authorized registration agent. The online business registration process is clear, complete, and available for use by foreign companies.

Outward Investment

The government does not restrict domestic investors from investing abroad; neither does it promote or provide incentives for outward investments. The publicly reported total stock of outward investments is worth approximately $141 million, the majority of which is in production facilities, pharmaceuticals, metal processing, and wholesale and retail trade in the Balkan region, the Netherlands, and Germany.

North Macedonia does not have a bilateral investment or double taxation treaty with the United States.

North Macedonia has concluded an Agreement for Promotion and Protection of Foreign Direct Investments with the following countries: Albania, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, China, Croatia, the Czech Republic, Denmark, Egypt, Finland, France, Germany, Hungary, India, Iran, Italy, Kazakhstan, Kuwait, Lithuania, Luxembourg, Malaysia, Montenegro, Morocco, the Netherlands, North Korea, Poland, Qatar, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Taiwan, Turkey, Ukraine, United Arab Emirates, and Vietnam.

North Macedonia is a signatory of three multilateral Free Trade Agreements: The Stabilization and Association Agreement (SAA) with EU member-states, giving North Macedonia duty-free access to 650 million consumers; the European Free Trade Agreement (EFTA) with Switzerland, Norway, Iceland, and Liechtenstein; and the Central European Free Trade Agreement (CEFTA) with Albania, Bosnia and Herzegovina, Moldova, Montenegro, Serbia, and Kosovo. Bilateral Free Trade Agreements are in force with Turkey and Ukraine.

North Macedonia is a member of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting and has joined the Statement on a Two-Pillar Solution to address the challenges arising from digitalization of the economy.

There are no recent changes to the tax regime. No U.S. companies operating in North Macedonia have raised tax concerns with Post.

Transparency of the Regulatory System

The government has made progress adopting reform priorities called for by the EU, NATO, and other bodies, leading to well-defined laws, institutional structures, and regulatory legal frameworks. However, laws are not regularly drafted based on data-driven evidence or assessments and, at times, move through parliament using shortened legislative procedures. While laws are in place, enforcement and uniform implementation of laws and regulations are generally lacking which can pose challenges for businesses and citizens.

North Macedonia has simplified regulations and procedures for large foreign investors operating in the Technological Industrial Development Zones (TIDZ). While the country’s overall regulatory environment is complex and not fully transparent, the government is making improvements, such as reforms designed to avoid frequent regulatory and legislative changes, coupled with inconsistent interpretations of the rules. The current government has published all incentives available to businesses operating in North Macedonia, which are standardized. However, larger companies (worth more than $1 billion) and those of strategic importance can negotiate customized incentive packages.

Rule-making and regulatory authorities reside within government ministries, regulatory agencies, and parliament. Almost all regulations most relevant to foreign businesses are at the national level. Regulations are generally developed in a four-step process. First, the regulatory agency or ministry drafts the proposed regulation. The proposal is then published in the Unique National Electronic Register of Regulations (ENER) for public review and comment ( ). After public comments are considered and properly incorporated into the draft, it is sent to the central government to be reviewed and adopted in an official government session. Once the government has approved the draft law, it is sent to parliament for full debate and adoption. The public consultation process has improved, with businesses, the public, and NGOs having an increasing role in commenting on draft regulations and proposing changes through ENER.

All newly adopted regulations, rules, and government decisions are published in the Official Gazette of the Republic of North Macedonia after they are adopted by the government or parliament or signed by the corresponding minister or director.

The government has systems in place to regularly communicate and consult with the business community and other stakeholders before amending and adopting legislation, through ENER and through dialogues with businesses, the civil sector, and academia. Interested parties, including chambers of commerce, can review the legislation published on ENER. The online platform is intended to facilitate public participation in policymaking, increase public comment, and provide a phase-in period for legal changes to allow enterprises to adapt.

Key institutions influencing the business climate publish official and legally binding rules and instructions for the implementation of laws. These institutions are obliged to publish all relevant laws, by-laws, and internal procedures on their websites; however, some do not make regular updates. The government makes significant efforts to ensure respect for the principles of transparency, merit, and equitable representation.

The Open Data Portal (, was established based on the Open Data Strategy (2018-2020) and Transparency Strategy (2019-2021) and enables citizens, civil sector, and all stakeholders to have free and open access to public data as an effective tool for innovation, growth, and transparent governance and contributed to greater transparency of government bodies, both at the central and local levels.

In March 2023, the Government adopted the Concept for Digital Transformation of Society, as an umbrella document that defines the basic principles for the digital transformation of all areas of society. Besides the digital signature that will be created with an e-ID card as equivalent to a handwritten signature, over the course of 5 years, the Government has committed to use of the digital version of all records across the board. The government is in the process of preparing the Law for Security of Information Networks, and a Digital Agency, which will be responsible for managing the environment for secure data exchange, setting standards for ICT and cyber security for all stakeholders, providing guidelines for change management during the digital transformation of the administration, and raising public awareness of this problem.

The government adopted the new 2022-2025 Public Financial Management Reform Program but has delayed the implementation of the Strategy for Public Administration Reform and the revision of the Law on Administrative Servants and the Law on Public Service Employees, a new Law on Top Management Service, and the Law on Restructuring of the Bodies of State Administration. The new organic budget law was adopted in September 2022.

Public finances and debt obligations are fairly transparent. The Ministry of Finance publishes budget execution data monthly; public debt figures, including contingent liability, quarterly; and the fiscal strategy is updated annually.

North Macedonia accepts International Accounting Standards, and the legal, regulatory, and accounting systems used by the government are consistent with international norms. North Macedonia has aligned its national law with EU directives on corporate accounting and auditing.

International Regulatory Considerations

As a candidate country for accession to the EU, North Macedonia is gradually harmonizing its legal and regulatory systems with EU standards. As a member of the WTO, North Macedonia regularly notifies the WTO Committee on Technical Barriers to Trade of proposed amendments to trade-related regulations. North Macedonia ratified the Trade Facilitation Agreement (TFA) in July 2015, the 50th out of 134 members of the WTO to do so. In October 2017, the government formed a National Trade Facilitation Committee, chaired by the Minister of Economy, which includes 22 member institutions. This Committee has identified areas which need harmonization with the TFA and is working toward implementation.

Legal System and Judicial Independence

North Macedonia’s legal system is based on the civil law tradition, with increasing adversarial-style elements, and includes an established legal framework for both commercial and contract law. The Constitution established independent courts to rule on commercial and contractual disputes between business entities, and court rulings are legally executed by private enforcement agents. Enforcement actions may be appealed before the court. The enforcement procedure fees were lowered and simplified in 2019. Commercial disputes up to €15,000 require mediation as a precondition to initiating legal action within the courts. Cases involving international elements may be decided using international arbiters. Ratified international instruments are considered an integral part of national legislation and cannot be altered by a national law, per the Constitution.

Throughout 2022, similar to previous years, businesses complained that lengthy and costly commercial disputes adjudicated through the court system created legal uncertainty. Yet businesses have not been inclined to use mediation, prompting Parliament in December 2021 to adopt a new and improved Mediation Law providing for broader use of mediation as a voluntary, contract-based, or legally mandated alternative prior to addressing a matter in court.

Numerous international reports note rule of law and corruption remain key challenges in North Macedonia, pointing to undue executive, business, and political interference in the judiciary, and poor funding for and management of administrative courts. These obstacles often result in lengthy and costly trials. The government began implementing major anti-corruption reforms throughout 2022 to improve judicial independence and impartiality. Contract enforcement and a perceived lack of transparent public procurement practices remain challenges for businesses.

Laws and Regulations on Foreign Direct Investment

North Macedonia’s legal framework is comprised of several laws including the Trade Companies Law, the Securities Law, the Profit Tax Law, the Customs Law, the Value Added Tax (VAT) Law, the Law on Trade, the Law on Acquiring Shareholding Companies, the Foreign Exchange Operations Law, the Payment Operations Law, the Law on Foreign Loan Relations, the Law on Privatization of State-owned Capital, the Law on Investment Funds, the Banking Law, the Labor Law, the Law on Financial Discipline, the Law on Financial Support of Investments, and the Law on Technological Industrial Development Zones (free economic zones). An English language version of the consolidated Law on Technological Industrial Development Zones is available at , and additional information at . No new major laws, regulations, or judicial decisions related to foreign investments were passed during the past year; however, some existing laws were amended slightly.

Competition and Antitrust Laws

The Commission for the Protection of Competition (CPC) is responsible for enforcing the eponymous law and issues opinions on draft legislation which may impact competition. The CPC reviews the impact on competition of proposed mergers and can prohibit a merger or approve it with or without conditions. The CPC also reviews proposed state aid to private businesses, including foreign investors, under the Law on Control of State Aid and the Law on State Aid. The CPC determines whether the state aid in question gives economic advantage to the recipient, is selective, or adversely influences competition and trade. More information on the CPC’s activities is available at  . There were no significant competition cases in 2022.

Expropriation and Compensation

The Law on Expropriation ( ) states the government can seize or limit ownership and real estate property rights to protect the public interest and to build facilities and carry out other activities of public interest. According to the Constitution and the Law on Expropriation, property under foreign ownership is exempt from expropriation except during instances of war or natural disaster, or for other reasons of public interest. Under the Law on Expropriation, the state is obliged to pay market value for any expropriated property. If the payment is not made within 15 days of the expropriation, interest will accrue. The government has conducted several expropriations, primarily to enable capital projects such as highway and railway construction, for which the government offered market value compensation. Expropriation procedures have followed strict legal regulations and due process. The government has not undertaken any measures that have been alleged to be, or could be argued to be, indirect expropriation, such as confiscatory tax regimes or regulatory actions that deprive investors of substantial economic benefits from their investments.

Dispute Settlements

ICSID Convention and New York Convention

North Macedonia is a party to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention) and the European Convention on International Commercial Arbitration. Additionally, North Macedonia has either signed, or has inherited by means of succession from the former Yugoslavia, a number of bilateral and multilateral conventions on arbitration, including the Convention Establishing the Multilateral Investment Guarantee Agency (MIGA); the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards; the Geneva Protocol on Arbitration Clauses from 1923; and the Geneva Convention on Enforcement of Foreign Arbitration Decisions.

In April 2006, the Law on International Commercial Arbitration came into force in North Macedonia. This law applies exclusively to international commercial arbitration conducted in the country. An arbitration award under this law has the validity of a final judgment and can be enforced without delay. Any arbitration award decision from outside North Macedonia is considered a foreign arbitral award and is recognized and enforced in accordance with the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral awards.

Investor-State Dispute Settlement

North Macedonia accepts binding international arbitration in disputes with foreign investors. Foreign arbitration awards are generally recognized and enforceable in the country provided the conditions of enforcement set out in the Convention and the Law on International Private Law (Official Gazette of the Republic of North Macedonia, No. 87/07 and No. 156/2010, ) are met. Since 2009 the country has been involved in several publicly known investor-state disputes before international arbitration panels. None of these involved U.S. investors. Local courts recognize and enforce foreign arbitration awards issued against the Government of North Macedonia. The country does not have a history of extrajudicial action against foreign investors.

International Commercial Arbitration and Foreign Courts

North Macedonia accepts international arbitration decisions on investment disputes. The country’s Law on International Commercial Arbitration is modeled on the United Nations Commission on International Trade Law (UNCITRAL) Model Law. Local courts recognize and enforce foreign arbitral awards and the judgments of foreign courts. Alternative dispute resolution mechanisms are available for settling disputes between two private parties. A Permanent Court of Arbitration, established in 1993 within the Economic Chamber of North Macedonia (a non-government business association), has the authority to administer both domestic and international disputes. North Macedonia requires mediation in disputes between companies up to €15,000 ($16,238 per 03/28/2023 exchange rate – e.g. “small claims”) in value before companies may proceed to court.

There is no tracking system for cases involving State Owned Enterprises (SOEs) in investment disputes in North Macedonia, and post is not aware of any examples.

Bankruptcy Regulations

North Macedonia’s bankruptcy law governs the settlement of creditors’ claims against insolvent debtors. Bankruptcy proceedings may be initiated over the property of a debtor, be it a legal entity, an individual, a deceased person, joint property of spouses, or a business. However, bankruptcy proceedings may not be implemented over a public legal entity or property owned by the Republic of North Macedonia. The Government of North Macedonia’s suspension of bankruptcy proceedings for the duration of the COVID-19 crisis ceased with the ending of the pandemic emergency declaration.

The Macedonian Credit Bureau ( ), commercial banks, and the National Bank of the Republic of North Macedonia serve as credit monitoring authorities.

Investment Incentives

Both the Law on Technological Industrial Development Zones (TIDZ) and the Law on Financial Support of Investments offer incentives. Investors in the TIDZ are eligible for tax exemptions for a period of up to 10 years of operation, in proportion to the size of investment and number of employees. Investors in the TIDZ are exempt from paying duties for equipment and machines as well as from municipality-level construction taxes. The land lease rate is low and investors are eligible for a grant equal to 10 percent of the cost of plant construction and new machinery, as well as a grant for improving competitiveness. North Macedonia’s legislative framework for FDI is generally harmonized with EU state aid regulations.

The salaries of employees working for TIDZ employers are exempt from personal income tax for a period of up to ten years after the first month in which the employer starts paying out salaries.

The government does not as a general matter issue guarantees or jointly finance foreign direct investment projects. However, depending on the industry and size of the investment, the government may decide to cover up to 50 percent of eligible investment costs over a period of 10 years.

The government has drafted and adopted legislation to stimulate investments in clean energy. This new incentive scheme is somewhat undermined, however, by broader policies that continue to support fossil fuels. The Western Balkans Investment Framework ( WBIF ) investment grants and European Bank for Reconstruction and Development ( EBRD ) loans are meant to support the transformation of the largest thermal power plants from coal to solar energy.

Foreign Trade Zones/Free Ports/Trade Facilitation

North Macedonia currently has 15 free economic zones in various stages of development throughout the country. The Directorate for Technological Industrial Development Zones ( ) is responsible for establishing, developing, and supervising 14 of them, including seven fully operational TIDZ: Skopje 1 and 2, Prilep, Shtip, Kichevo, Struga, and Strumica. The Tetovo TIDZ is a public-private partnership. U.S. companies operate in TIDZ throughout North Macedonia, including automotive components manufacturers ARC Automotive (Skopje 1), Adient (Shtip and Strumica), Aptiv (Skopje 1), Gentherm (Prilep), Lear (Tetovo), and Dura Automotive and Dura Structures & Extrusion (Skopje 2), as well as electronic components manufacturer Kemet (Skopje 1).

Performance and Data Localization Requirements

North Macedonia does not normally impose performance requirements, such as mandating local employment (working level or management level) or domestic content in goods or technology, as a condition for establishing, maintaining, or expanding an investment. Foreign investors in the TIDZ may employ staff from any country. In 2016, North Macedonia simplified the procedure for expatriates to obtain permission to live and work in the country.

North Macedonia does not impose a “forced localization” policy for data. The government does not prevent or unduly impede companies from freely transmitting customer or other business-related data outside the country. Post is not aware of any requirements for foreign IT providers to turn over source code or provide access to encryption. However, based on the EU General Data Protection Regulation (GDPR) of May 2018, North Macedonia’s Directorate for Personal Data Protection adopted in February 2020 amendments to the Law on Personal Data Protection to harmonize North Macedonia’s laws with EU regulations.

Depending on the sector and type of investment, various government authorities oversee and assess the fulfillment of investment promises made by foreign investors. Government entities include the Agency for Foreign Investments and Export Promotion (Invest North Macedonia), the Directorate for Technological Industrial Development Zones, and the Ministry of Economy.

There is no discriminatory export or import policy affecting foreign investors. Almost 96 percent of total foreign trade is unrestricted. Current tariffs and other customs-related information are published on the website of the Customs Administration ( ).

Real Property

Laws protect ownership of both movable and real property, but implementation of these laws remains inconsistent. Mortgages and liens are regularly utilized, and the recording system is reliable. Highly centralized control of government owned “construction land,” the lack of coordinated local and regional zoning plans, and the lack of an efficient construction permitting system continue to impede business and investment. However, the government has improved the cadaster system by fully digitalizing all investment and holdings records, which has increased the security and speed of real estate transactions.

Land leased or acquired by foreign and/or non-resident investors is regulated by the Law on Ownership and Other Real Rights. EU and OECD residents have the same rights as local residents in lease or acquisition of construction land or property, whereas for non-EU and non-OECD residents, property ownership is regulated under terms of reciprocity. Foreign residents cannot acquire ownership of agricultural land in North Macedonia. Foreign investors may acquire property rights for buildings used in their business activities, as well as full ownership rights over construction land through a locally registered company. If a foreign company registers a local company in any form (subsidiary, local partner, or joint venture representation office), it can acquire land with full ownership rights similar to a domestic company.

Purchased land belongs to the owner and, even if it remains unoccupied, cannot revert to other owners such as squatters. The exception to this is agricultural land granted by the government as concessions. If the consignee does not use the land per the agreement, then the government can cancel the concession and take back possession of the land.

Intellectual Property Rights

The responsibility for safeguarding intellectual property rights (IPR) is distributed among numerous institutions. The State Office of Industrial Property governs patents, trademarks, service marks, designs, models, and samples. A unit within the Ministry of Culture administers the protection of authors’ rights and other related rights (e.g., music, film, television). The State Market Inspectorate is responsible for monitoring markets and preventing the sale of counterfeit and pirated goods. The Ministry of Interior is responsible for IPR-related crimes committed on the internet. The Customs Administration has the right to seize suspect goods to prevent their distribution pending confirmation from the rights holder of the authenticity of the goods. The National Coordination Body for Intellectual Property, which previously organized interagency raids to seize counterfeit products, focuses on small sellers in open-air markets and mostly targeted trademark infringements, has been inactive for the past three years.

In January 2023, North Macedonia had its first bilateral screening for Chapter 7 – Intellectual Property Rights on the level of transposition of the EU legislation and its implementation in the country’s legislation. While IPR laws and regulations are generally harmonized with EU standards, the country still needs to demonstrate adequate enforcement of those laws. The European Commission’s 2022 report on North Macedonia noted the establishment of an information platform for law enforcement institutions to exchange data on IPR, but no progress was achieved to make it functional to create a credible enforcement record and gather reliable statistics on the institutional handling of IPR infringements. The EU also noted the need for further improvement of the legal framework on IPR, notably the collective rights management system, by aligning with the Collective Rights Management Directive, and industrial property rights, by aligning with the Enforcement Directive and the Trade Secrets Directive.

The new draft National Intellectual Property Strategy and Action Plan 2022-2026 was prepared in January 2022 and is still pending adoption by the Government. The Strategy proposes transfer of competences for all tasks related to the protection of copyright and all related rights from the Ministry of Culture to the State Office of Industrial Property, incorporating all IPR segments into one regulatory institution. The strategy also anticipates better coordination with other government agencies on the mapping and cataloging of autochthonous agricultural products.

While North Macedonia has many laws in place to protect IPR, infringement is frequent, and the court system should be improved. Prosecutors and judges for both civil and criminal cases are aware of IPR but lack adequate experience due to the small number of IPR cases. There are no specialized courts to handle IPR cases. Many rights holders do not pursue legal action since IPR violators usually lack the financial resources to pay damages. Courts are sometimes reluctant to find accused IPR violators guilty due to stiff mandatory minimum sentences for small-time distributors of counterfeit goods. The penalties for IPR infringement range from 30 to 60 days closure of businesses, monetary fines of up to €5,000 ($5,492), or a prison sentence of up to five years. North Macedonia does not track and report cumulative statistics on IPR infringement or seizures of counterfeit goods, and therefore lacks a credible enforcement record. North Macedonia is not included in the U.S. Trade Representative’s Special 301 Report or the Notorious Market List.

North Macedonia is a member of the World Intellectual Property Organization (WIPO) and party to several of its treaties, including the Berne Convention, the Paris Convention, the Patent Cooperation Treaty, the WIPO Copyright Treaty, and the WIPO Performances and Phonograms Treaty.

For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at 

Capital Markets and Portfolio Investment

The government openly welcomes foreign portfolio investors. The establishment of the Macedonian Stock Exchange (MSE) in 1995 made it possible to regulate portfolio investments, although North Macedonia’s capital market is modest in turnover and capitalization. Market capitalization in 2022 was $3.7 billion, a 4.3 percent drop from the previous year. The main index, MBI10, dropped by 8.1 percent to 5,652 points at year-end. Participation of foreign portfolio investors in 2022 was symbolic, accounting for an average of 4.6 percent of total MSE turnover, 5.9 percentage points less than in 2021. The current regulatory framework does not appear to discriminate against foreign portfolio investments.

There is an effective regulatory system for portfolio investments, and North Macedonia’s Securities and Exchange Commission (SEC) regulates the market and licenses all MSE members to trade in securities. In 2022, the total number of listed companies was 94, two less than in 2021, and total turnover dropped by 42.1 percent. Compared to international standards, overall liquidity of the market is still modest for entering and/or exiting sizeable positions. Traders generally operate as individuals, rather than through investment funds, which have been present since 2007.

There are no legal barriers to the free flow of financial resources into the products and factor markets. The National Bank of the Republic of North Macedonia (NBRNM) respects IMF Article VIII and does not impose restrictions on payments and transfers for current international transactions. A variety of credit instruments are provided at market rates to both domestic and foreign companies.

Money and Banking System

In its November 2022 report, the International Monetary Fund (IMF) noted that North Macedonia’s banking system was well-capitalized, without solvency problems that may threaten systemic stability, with low non-performing loans and adequate provisions. It endorsed the NBRNM’s tightening of monetary policy to quell rising inflation expectations and protect the exchange rate peg.

Besides their own cash flow, domestic companies secure their financing mostly from bank loans due to the lack of corporate bonds and other securities as credit instruments.

Financial resources are almost entirely managed through North Macedonia’s banking system, consisting of 13 banks and a central bank, the National Bank of the Republic of North Macedonia (NBRNM). The banking sector is highly concentrated, with three of the largest banks controlling 57.2 percent of the banking sector’s total assets of about $11.2 billion, collecting 70.5 percent of total household deposits, and extending 61.1 percent of all loans to households. The largest commercial bank in the country had total assets of $2.6 billion, or 23.1 percent of the banking sector’s total assets. There are seven small banks with individual market shares of less than 4 percent each, and the smallest bank has only 0.4 percent share of total banking sector assets. Foreign banks or branches are allowed to establish operations in the country on equal terms as domestic operators, subject to licensing and prudential supervision from the NBRNM. In 2022, foreign capital was present in 12 of North Macedonia’s 13 banks, and was dominant in 9 banks, controlling 71.5 percent of total banking sector assets, 81.5 percent of total loans, and 68.9 percent of total deposits.

According to the NBRNM, the banking sector’s non-performing loans at the end of Q3 of 2022 were 3.3 percent of total loans, dropping by 0.3 percentage points on an annual basis. Non-performing loans remained low despite the lifting of the NBRNM’s anti-crisis measures in March 2021, and despite continuous monetary tightening. Total profits at the end of Q3 of 2022 reached $137 million, 11.5 percent higher than the same period in 2021.

Banks’ liquid assets at the end of Q3 of 2022 were 28.8 percent of total assets, 2.8 percentage points higher than in the same period in 2021, remaining comfortably high. In 2022, the NBRNM conducted different stress-test scenarios on the banking sector’s sensitivity to increased credit risk, liquidity shocks, and insolvency shocks, all of which showed the banking sector is healthy and resilient, with a capital adequacy ratio remaining above the legally required minimum of eight percent. The capital adequacy ratio of the banking sector at the end of Q3 of 2022 was 17.7 percent, 0.4 percentage points higher than the same period in 2021, with all banks maintaining a ratio above 12 percent.

There are no restrictions on a foreigner’s ability to establish a bank account. All commercial banks and the NBRNM have established and maintain correspondent banking relationships with foreign banks. The banking sector lost no correspondent banking relationships in the past three years, nor were there any indications that any current correspondent banking relationships were in jeopardy. There is no intention to allow the implementation of blockchain technologies in banking transactions in North Macedonia. Alternative financial services do not exist in the economy. The transaction settlement mechanism is solely through the banking sector.

Foreign Exchange and Remittances

Foreign Exchange

The Constitution provides for free transfer, conversion, and repatriation of investment capital and profits by foreign investors. Funds associated with any form of investment can be freely converted into other currencies. Conversion of most foreign currencies is possible at market rates on the official foreign exchange market. In addition to banks and savings houses, numerous authorized exchange offices also provide exchange services. The NBRNM operates the foreign exchange market but participates on an equal basis with other entities. There are no restrictions on the purchase of foreign currency.

Parallel foreign exchange markets are not in evidence, largely due to the long-term stability of the national currency, the denar (MKD). The denar is convertible domestically but is not convertible on foreign exchange markets. The NBRNM is pursuing a strategy of pegging the denar to the euro and has successfully kept it at the same level since 1997. Required foreign currency reserves are spelled out in the banking law.

Remittance Policies

Remittances from workers in the global diaspora represent a significant source of income for North Macedonia’s households. In 2022, net private transfers amounted to $2.6 billion, accounting for 18.7 percent of GDP. There have been no recent changes in investment remittance policies, with no immediate plans for changes to the regulations. By law, foreign investors are entitled to transfer profits and income without being subject to a transfer tax. All types of investment returns are generally remitted within three working days. There are no legal limitations on private financial transfers to and from North Macedonia.

Sovereign Wealth Funds

North Macedonia does not have a sovereign wealth fund.

There are about 120 State Owned Enterprises (SOEs) in North Macedonia, the majority of which are public utilities, predominately owned by the central government or the 81 local governments. The government estimates about 8,600 people are employed in SOEs, which operate in several sectors of the economy, including energy, transportation, and media. There are also industries such as arms production and pharmaceuticals in which private enterprises may not operate without government approval. SOEs are governed by boards of directors, consisting of members appointed by the government. All SOEs are subject to the same tax policies as private sector companies. SOEs are allowed to purchase or supply goods or services from the private sector and are not given non-market-based advantages, such as preferential access to land or raw materials.

There is no published registry with complete information on all SOEs in the country.

The government has yet to implement broad public administration reform, which would also include SOEs, especially addressing their employment policies and governance. North Macedonia does not adhere to the OECD Guidelines on Corporate Governance for SOEs. In February 2018, the government sent its bid to the World Trade Organization to upgrade its status from observer to a full member of the Government Procurement Agreement (GPA). The negotiation process is still ongoing.

Privatization Program

Foreign and domestic investors have equal opportunity to participate in the privatization of state-owned assets through an easily understandable, non-discriminatory, and transparent public bidding process. Neither the central government nor any local government has announced plans to privatize fully or partially any of the utility companies or SOEs in their ownership. The government is currently trying to resolve the status of one privatization of a state-owned loss-making company in a non-discriminatory process through an international tender.

Responsible Business Conduct (RBC) is a nascent concept in North Macedonia, and the number of enterprises which contribute to sustainable development is very limited. The government has adopted some minor measures to encourage RBC, but it has not defined RBC or policies to actively promote and encourage it. The government has not conducted a “National Action Plan” on RBC and does not currently factor RBC policies into its procurement decisions.

There have not been any high-profile controversial instances of private sector impact on human rights or resolution of such cases in the recent past. Previously, the government has failed to fully enforce laws related to labor rights, consumer protection, environmental protection, and other laws and regulations intended to protect individuals from adverse business impacts.

North Macedonia passed the Law on Trade Companies in 2004 and the Securities Law in 2005, which regulate corporate governance. Together these laws provide a clear distinction between the rights and duties of shareholders versus the operations and management of the company. Shareholders generally cannot be held liable for the acts or omissions of the company. The American Chamber of Commerce in North Macedonia had a committee on Community Engagement and Responsible Business Conduct, which, beginning in 2015, organized seminars on relevant topics and maintained a database of corporate social responsibility activities carried out by over 260 companies. The government does not take any measures to encourage adherence to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Afflicted and High-Risk Areas. North Macedonia does not participate in the Extractive Industries Transparency Initiative.

Additional Resources

Department of State

Department of the Treasury

Department of Labor

Climate Issues

The Government of North Macedonia adopted the Long-Term Strategy (LTC) for Climate Action in September 2021 and set its Nationally Determined Contributions (NDCs) to reduce national emissions and adapt to the impacts of climate change, per the Paris Agreement. The majority of North Macedonia’s emissions come from energy generation, buildings, and transportation.

North Macedonia has set ambitious climate goals, including a 51% reduction in greenhouse gases emissions by 2030, as compared to 1990 levels, but has been slow to roll out more robust policies that increase the ability to achieve set goals faster.

There are currently no environmental or green growth considerations in public procurement policies, nor are there regulatory incentives for “green” investments.  However, all infrastructure projects require environmental impact assessments. In addition, every polluting industry must obtain an Integrated Prevention and Pollution Control Permit (IPPC), issued by the Ministry of Environment and Physical Planning or the municipality where the facility will be located, depending on its size, and expected emissions.  The IPPC is regulated by the Law on Environment.

North Macedonia has laws intended to counter bribery, abuse of official position, and conflicts-of-interest, and government officials and their close relatives are legally required to disclose their income and assets. However, enforcement of anti-corruption laws has often been weak, selectively targeting government critics and low-level offenders. There have been credible allegations of corruption in law enforcement, the judiciary, and many other sectors.

In April 2021, Parliament adopted the 2021-2025 National Strategy for the Prevention of Corruption and Conflict of Interest and related Action Plan, consolidating the country’s commitment to prevent corruption and punish corrupt behavior. The State Commission for the Prevention of Corruption (SCPC) ( ), has been proactive in opening and following up on a number of corruption-related inquiries focused on high-level officials from across the political spectrum for alleged nepotism and conflict of interest. Cases initiated by the former Special Prosecutor’s Office (SPO) (which emanated from a wiretapping scandal which revealed extensive abuse of office by former public officials and corruption involving public tenders) continued to move through the court system with significant delays, and several high-profile convictions were reversed and sent for re-trials, resulting in several cases being dropped due to the expiration of the statute of limitations. Several cases were subject to final rulings resulting mostly in overly lenient, suspended sentences. Transparency International (TI) ranked North Macedonia 85th out of 180 countries in the 2022 Corruption Perceptions Index. While TI notes that North Macedonia’s authorities are making steps in the right direction by opening new corruption cases, this is undermined by lack of follow-up to resolve   ongoing ones and a lack of integrity in the selection process of key figures in judiciary. TI further notes a lack of government efforts to combat corruption and conflicts of interest in public administration, and insufficient independence of institutions responsible for investigating corruption and organized crime.

To deter corruption, the government uses an automated electronic customs clearance process, which allows businesses to monitor the status of their applications. The Bureau for Public Procurement has likewise introduced an electronic system which allows publication of notices from domestic and international institutions, tender documentation previews without registering in the system, e-payments for system use, electronic archiving, and electronic complaint submission ( 

The government does not require private companies to establish internal codes of conduct prohibiting bribery of public officials, although the National Anticorruption Strategy envisions private sector proactively preventing and combating corruption. Several domestic NGOs focus on anti-corruption and transparency in public finance and tendering procedures. There are frequent reports of nepotism in public tenders. The government does not provide any special protections to NGOs involved in investigating corruption. North Macedonia has ratified the UN Convention against Corruption and the UN Convention against Transnational Organized Crime and has signed the OECD Convention on Combating Bribery.

Many businesses operating in North Macedonia, including some U.S. businesses, identified corruption as a problem in government tenders, in efforts to secure licenses, and in the judiciary. No local firms or non-profit groups provide vetting services of potential local investment partners. Foreign companies often hire local attorneys who have knowledge of local industrial sectors and access to the Central Registry and business associations, who can provide financial and background information on local businesses and potential partners.

Resources to Report Corruption

Contact at the government agency or agencies that are responsible for combating corruption:

State Commission for Prevention of Corruption (SCPC), Presveta Bogorodica no.3 Blvd, 1000 Skopje, Republic of North Macedonia
Phone:  +389 70 342 967 


  • External whistleblower reporting:
    POC: Vida Kochiska, Ph.D., Advisor
    Phone: + 389 2 3129 335, ext 568
    Email: v.popovska@ombudsman 

Ministry of Interior
Professional Standards Unit contact point for reporting police misconduct Email: 

Customs Administration
Anti-Corruption Hotline: + 389 2 197

Inspections’ Council

Judicial Council
Phone: +389 2 3218130
Email: , 
Link whistleblower reporting: 

Public Prosecutor’s Office
Phone: + 389 2 3298 288, + 389 76 304 872, + 389 75 304 862
Email: , 

Platform of Civic Organization for Fight Against Corruption

Transparency International, North Macedonia

North Macedonia generally has been free from political violence over the past decade, although interethnic relations have been strained at times. Public protests, demonstrations, and strikes occur sporadically, and often result in traffic jams, particularly near the center of the capital, Skopje.

Following 2016 parliamentary elections, an organized group of protestors leveraged ongoing protests and eventually stormed the parliament building on April 27, 2017, in reaction to the change of government and the election of Talat Xhaferi as Speaker of Parliament, the first ethnic Albanian to assume that post since the country’s independence. More than 100 people were injured, including several members of the government and seven MPs. On March 18, 2019, 16 individuals were convicted and given lengthy prison sentences for their involvement in the attack, including the former head of the Public Security Bureau (who had previously served as Minister of Interior) and former security officers. On July 26, 2021, in the so-called Parliament Violence Organizers’ case, the trial court issued roughly six-year prison sentences against the former VMRO-DPMNE Speaker of Parliament Trajko Veljanoski, former Minister of Education and Science Spiro Ristovski, former Minister of Transport and Communications Mile Janakieski, and former Administration for Security and Counterintelligence Director Vladimir Atanasovski, for organizing the attack on Parliament. The Skopje Appellate Court granted the defense’s appeals on April 3, 2023, reversing the convictions against the six and sending the case back for re-trial, citing the trial court’s violations of law and facts during the original trial. The related cases against the former VMRO-DPMNE Prime Minister Nikola Gruevski and former counter-intelligence official Nikola Boshkoski, both fugitives, are ongoing.

There is neither widespread anti-American nor anti-Western sentiment in North Macedonia. However, credible reports indicate that since Russia’s invasion of Ukraine, the country has been a target of intensified hybrid attacks by Russia, with anti-western narratives by Russia-sponsored domestic elements. A poll released in February 2023 showed that 21 percent of the respondents believed the U.S. should be the country’s second-major economic partner (after the EU). The U.S. was perceived as an external factor with the greatest influence in North Macedonia by 52 percent of the respondents, followed by the EU (21 percent), Russia and Bulgaria (four percent each) and Germany (three percent). Regarding whether the citizens would support an alternative to the EU, like the Euro-Asian Union led by Russia, 53 percent said “no” and 32 percent responded “yes,” a drop of 3 percent compared to 2021 and 7 percent compared to 2020. There have been no incidents in recent years involving politically motivated damage to U.S. projects or installations. Violent crime against U.S. citizens is rare. Theft and other petty street crimes do occur, particularly in areas where tourists and foreigners congregate.

North Macedonia has been a member of NATO since 2020. The country has been an EU candidate country since December 2005 and, in March 2020 the General Affairs Council of the European Union decided to open accession negotiations with North Macedonia, which was endorsed by the European Council the following day. However, Bulgaria refused to approve North Macedonia’s EU negotiating framework in November 2020, effectively blocking the official launch of EU accession talks. In 2022, the governments of North Macedonia and Bulgaria re-launched efforts to resolve outstanding bilateral issues through intensified talks with a view to lifting Bulgaria’s veto. In July 2022 North Macedonia’s Parliament adopted the EU Negotiations Framework and launched a conditioned screening with the EU. The EU Negotiations Framework requires North Macedonia to adopt constitutional amendments listing ethnic Bulgarians in its Preamble in order to launch full-blown accession talks. A peaceful protest in front of parliament July 5, 2022, against this EU-proposed negotiations framework turned violent at the hands of a small group of provocateurs, resulting in 47 injured police officers (11 of them seriously) and 11 detained individuals.  The governing SDSM condemned the violence and accused opposition VMRO-DPMNE of associating with radical far-left, pro-Russian, anti-US, and anti-Western party Levica, and its leader Dimitar Apasiev.

Foreign investors, especially those in labor-intensive industries, find North Macedonia’s competitive labor costs and high number of English speakers attractive. The average net wage in December 2022 was MKD 31 859 ($568) per month. Тhe minimum net wage for April 2022 through February 2023 was set to MKD 18,000 ($321) per month. In February 2023, the government raised the minimum wage to 20.175 MKD ($360), effective March 2023.

In 2022, North Macedonia’s labor force consisted of 808,078 people, of which 692,034 (86.6 percent) were officially employed and 116,045 (14.4 percent) were officially unemployed. North Macedonia’s employed labor force is roughly 59.4 percent male and 40.6 percent female. The largest number of employees are engaged in manufacturing (19.6 percent), trade (15.5 percent), and agriculture (10 percent). The total unemployment rate for youth ages 15 to 29 years old is 32 percent. About 17 percent of the unemployed have a university education. Informal sectors of the economy, including agriculture, are estimated to account for 22 percent of employment. The poverty rate for 2021 was 21.8 percent.

According to the IMF and domestic experts, the informal economy is estimated at approximately 40 percent of the overall economy. In 2019 the government adopted an Action Plan for Combating the Informal Economy 2020-2021 which includes priorities such as improving, measuring, monitoring, and raising public awareness of the negative impact to society, and strengthening the tax code. In August 2022, the Government announced a major fiscal reform, or SMART system of public finance, which is expected to help the economy recover from the COVID and energy crisis of the past three years. The introduction of the planned progressive taxation of income was once again postponed due to the opposition within the business community.

Despite the relatively high unemployment rate, foreign investors report difficulties in recruiting and retaining workers. Positions requiring technical and specialized skills can be especially difficult to fill due to a mismatch between industry needs, the educational system, and graduates’ aspirations. Many well-trained professionals with highly marketable skills, such as IT specialists, outsource their skills to foreign companies or choose to work outside the country. To address shortages of factory workers, the government encourages the dispersal of labor-intensive manufacturing investments to different parts of the country, and companies often bus in workers from other areas. The government continued with the Operational Plan for Active Programs and Measures for Employment and Services in the Labor Market in 2023, which defines active government measures, programs, and services for self-employment and employment to stimulate job creation. The Plan also provides subsidies for new and existing jobs, internships, specialized skills training, vocational training for unemployed persons, and re-qualification or retraining. The Labor Law and accompanying measures do not discriminate against gender, race, or ethnicity.

Relations between employees and employers are regulated by individual employment contracts, collective agreements, and labor legislation. The Law on Working Relations regulates all forms of employment relations between employees and employers to include retirement, lay-offs, and union operations. Severance and unemployment insurance are also covered by the same law. Most labor-related laws are in line with international labor standards and generally align with recommendations of the International Labor Organization (ILO). Labor laws apply equally to both domestic and foreign investments, including those in the free economic zones, and employees under each are equally protected.

The Employment Agency ( ) provides professional, organizational, administrative, and other services related to employment and unemployment insurance and provides support, assistance, and services to all stakeholders in the labor market.

Employment of foreign citizens is regulated by the Law on Employment and Work of Foreigners: .

There is no limitation on the number of employed foreign nationals or the duration of their stay. Work permits are required for foreign nationals, and an employment contract must be signed upon hiring. The employment contract, which must be in writing and kept on the work premises, should address the following provisions: description of the employee’s duties, duration of the contract (finite or indefinite), effective start and termination dates, workplace location, hours of work, rest and vacation periods, qualifications and training, salary, and pay schedule. The law establishes a 40-hour work week with a minimum 24-hour rest period, paid vacation of 20 to 26 workdays, and sick leave benefits. Employees may not legally work more than an average of eight hours of overtime per week over a three-month period, or 190 hours per year. According to the collective agreement for the private sector between employers and unions, employees in the private sector have a right to overtime pay at 135 percent of their regular rate. In addition, the law entitles employees who work more than 150 hours of overtime per year to a bonus of one month’s average salary. Although the government sets occupational safety and health standards for employers, those standards are not enforced in the informal sector.

The Law allows free associating in trade unions if workers agree to organize themselves in such a format. Trade unions are interest-based, legally autonomous labor organizations. Membership is voluntary, and activities are financed by membership dues. About 22 percent of legally employed workers are dues-paying union members. Although legally permitted, there are no unions in the factories operating in the free economic zones. Most unions, except for a few local branches, are generally not independent of the influence of government officials, political parties, and employers.

There are two main associations of trade unions: The Union of Trade Unions and the Confederation of Free Trade Unions. Each association is comprised of independent branch unions from the public and private sectors. Both associations, along with representatives from the Organization of Employers of North Macedonia and relevant government ministries, are members of the Economic – Social Council. The Council meets regularly to discuss issues of concern to both employers and employees, and reviews amendments to labor-related laws.

The rights of workers in industrial divisions are regulated by National Collective Bargaining Agreements, and there are two on the national level—one for the public sector and one for the private sector. Only about 25 percent of the labor force is covered by these agreements. National collective agreements in the private sector are negotiated between representative labor unions and representative employer associations. The national collective agreement for the public sector is negotiated between the Ministry of Labor and Social Policy and labor unions. Separate contracts are negotiated by union branches at the industry or company level. Collective bargaining agreements are most prevalent in the metal industry, private sector education, and court administration.

An out-of-court mechanism for labor dispute resolution was introduced in 2015 with ILO assistance. North Macedonia’s labor regulations comply with international labor standards and are in line with the ILO. In 2018, the government adopted several changes to the Law on Labor relations, most of which related to workers’ rights in procedures for termination of work contracts, severance pay, and apprenticeships.

Financing and insurance for export, investment, and development projects are made possible through agencies such as the U.S. Trade and Development Agency (USTDA); the U.S. Export-Import Bank (EX-IM); the U.S. International Development Finance Corporation (DFC); the European Bank for Reconstruction and Development (EBRD); the International Bank for Reconstruction and Development (World Bank); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the Southeast Europe Equity Fund (SEEF). Most funding for major projects is acquired through co-financing agreements, especially for transportation and energy infrastructure development.

Political risk insurance and project financing have been available to investors in North Macedonia since 1996 through OPIC, which has become DFC. The DFC focuses on debt financing, political risk insurance, equity investment, and supporting private equity investment funds. MIGA provides investment guarantees against certain non-commercial risks (i.e., political risk insurance) to eligible foreign investors who make qualified investments in developing member countries.

Although its primary focus is export assistance, including direct loans and capital guarantees aimed at the export of non-military items, EXIM also provides insurance policies to protect against both political and commercial risks. USTDA, SEEF, the World Bank, and the EBRD focus more directly on financing agreements.

Note: Outside of energy infrastructure projects in Europe and Eurasia, high income countries (as defined by the World Bank) generally do not qualify for DFC support; see the “Guide to Partnering with U.S. International DFC” for more information on DFC programs: .

Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy

Host Country Statistical source*

USG or international statistical source

USG or International Source of Data:  BEA; IMF; Eurostat; UNCTAD, Other

Economic Data





Host Country Gross Domestic Product (GDP) ($M USD)





Foreign Direct Investment

Host Country Statistical source*

USG or international statistical source

USG or international Source of data:  BEA; IMF; Eurostat; UNCTAD, Other

U.S. FDI in partner country ($M USD, stock positions)





BEA data available at

Host country’s FDI in the United States ($M USD, stock positions)





BEA data available at

Total inbound stock of FDI as % host GDP


60.4 %



UNCTAD data available at   

* Source for Host Country Data:  State Statistical Office (SSO) publishes data estimates on GDP; National Bank of the Republic of North Macedonia (NBRNM) publishes data on FDI. Data is publicly available online and is published immediately upon processing with a lag of less than one quarter.  End-year data for previous year is usually published in March of current year.

Table 3: Sources and Destination of FDI

Direct Investment from/in Counterpart Economy Data

From Top Five Sources/To Top Five Destinations (US Dollars, Millions)

Inward Direct Investment

Outward Direct Investment

Total Inward 7.138



Total Outward   141









United Kingdom















Bosnia and Herzegovina   









“0” reflects amounts rounded to +/- USD 500,000.

Arben Gega
Commercial Specialist
U.S. Embassy – Skopje
Samoilova 21
1000 Skopje, Republic of North Macedonia
Tel: +389 2 310 2403

On This Page

  2. 1. Openness To, and Restrictions Upon, Foreign Investment
    1. Policies Towards Foreign Direct Investment
    2. Limits on Foreign Control and Right to Private Ownership and Establishment
    3. Other Investment Policy Reviews
    4. Business Facilitation
    5. Outward Investment
  3. 2. Bilateral Investment and Taxation Treaties
  4. 3. Legal Regime
    1. Transparency of the Regulatory System
    2. International Regulatory Considerations
    3. Legal System and Judicial Independence
    4. Laws and Regulations on Foreign Direct Investment
    5. Competition and Antitrust Laws
    6. Expropriation and Compensation
    7. Dispute Settlements
      1. ICSID Convention and New York Convention
      2. Investor-State Dispute Settlement
      3. International Commercial Arbitration and Foreign Courts
    8. Bankruptcy Regulations
  5. 4. Industrial Policies
    1. Investment Incentives
    2. Foreign Trade Zones/Free Ports/Trade Facilitation
    3. Performance and Data Localization Requirements
  6. 5. Protection of Property Rights
    1. Real Property
    2. Intellectual Property Rights
  7. 6. Financial Sector
    1. Capital Markets and Portfolio Investment
    2. Money and Banking System
    3. Foreign Exchange and Remittances
      1. Foreign Exchange
      2. Remittance Policies
    4. Sovereign Wealth Funds
  8. 7. State-Owned Enterprises
    1. Privatization Program
  9. 8. Responsible Business Conduct
    1. Additional Resources
    2. Climate Issues
  10. 9. Corruption
    1. Resources to Report Corruption
  11. 10. Political and Security Environment
  12. 11. Labor Policies and Practices
  13. 12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs
  14. 13. Foreign Direct Investment Statistics
  15. 14. Contact for More Information
2023 Investment Climate Statements: North Macedonia
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