INTRODUCTION

The Republic of Macedonia is rapidly advancing on the path of political and economic reforms towards strengthening its democratic society and its open market economy.

The result is political and macroeconomic stability providing much room for growth. The primary goals of the Government are as follows:
- economic growth and development,
- active participation in regional and global integration processes,
- maintenance of macroeconomic stability,
- continuous structural reforms focused especially on promotion of the SME sector and attracting foreign direct investments (FDIs), and
- reduced unemployment and poverty.

The Republic of Macedonia was granted EU-candidacy in December 2005, which has significantly improved the country’s political credibility in the international business community.

LOCATION AND GEOGRAPHY

The Republic of Macedonia is situated in the central part of the Balkan Peninsula covering an area of 25,713 square kilometres. Its relief is characterized by large and high mountain massifs giving way to extensive, flat valleys and plains.

The country features a developed hydro-graphic net with numerous springs, rivers, and many natural and artificial lakes. The climate in Macedonia is diverse: in the southern part it is altered Mediterranean, in the central and northern areas it is mild continental and on high mountains-mountainous.

The country is bordered by Serbia to the North, Bulgaria to the East, Greece to the South and Albania to the West. It is a major transit way for shipment of goods from Greece, through the Balkans, towards Eastern, Western and Central Europe and through Bulgaria to the East.

Macedonia has an ideal geographic position on the Balkan Peninsula for opening industrial capacities, for branch offices and consignation facilities that would gravitate towards a market of 30 to 40 million consumers. More precisely, the capital of Macedonia, Skopje, is less then a two-hour drive away from the neighboring countries.

Major cities are Skopje (>600,000 citizens), Kumanovo, Bitola, Prilep, Tetovo, Veles, Ohrid, Strumica, etc.