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Macedonia
Searching for car hire is never much fun. That is why
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you arrive in Macedonia. Choose Car Rental options on size
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Macedonia gained its independence peacefully from Yugoslavia
in 1991, but Greece's objection to the new state's use
of what it considered a Hellenic name and symbols delayed
international recognition, which occurred under the provisional
designation of "the Former Yugoslav Republic of Macedonia."
In 1995, Greece lifted a 20-month trade embargo and the
two countries agreed to normalize relations. The United
States began referring to Macedonia by its constitutional
name, Republic of Macedonia, in 2004 and negotiations
continue between Greece and Macedonia to resolve the name
issue. Some ethnic Albanians, angered by perceived political
and economic inequities, launched an insurgency in 2001
that eventually won the support of the majority of Macedonia's
Albanian population and led to the internationally-brokered
Framework Agreement, which ended the fighting by establishing
a set of new laws enhancing the rights of minorities.
Fully implementing the Framework Agreement and stimulating
economic growth and development continue to be challenges
for Macedonia, although progress has been made on both
fronts over the past several years.
Macedonia's small, open economy make it vulnerable to
economic developments in Europe and dependent on regional
integration and progress toward EU membership for continued
economic growth. 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.
The collapse of Yugoslavia ended transfer payments from
the central government and eliminated advantages from
inclusion in a de facto free trade area. An absence of
infrastructure, UN sanctions on the downsized Yugoslavia,
and a Greek economic embargo over a dispute about the
country's constitutional name and flag hindered economic
growth until 1996. GDP subsequently rose each year through
2000. In 2001, during a civil conflict, the economy shrank
4.5% because of decreased trade, intermittent border closures,
increased deficit spending on security needs, and investor
uncertainty. Growth averaged 4% per year during 2003-06
and 5% per year during 2007-08. Macedonia has maintained
macroeconomic stability with low inflation, but it has
so far lagged the region in attracting foreign investment
and creating jobs, despite making extensive fiscal and
business sector reforms. Official unemployment remains
high at nearly 35%, but may be overstated based on the
existence of an extensive gray market, estimated to be
more than 20% of GDP, that is not captured by official
statistics. In the wake of the global economic downturn,
Macedonia has experienced decreased foreign direct investment,
lowered credit, and a slowdown of export growth. The Government
of Macedonia now predicts growth in 2009 to be no more
than 3%.
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