Invest in North Macedonia
Key Macroeconomic Indicators: North Macedonia
An Emerging Economy with Strong Potential
The sectors of Business Process Outsourcing (BPO), Information Technology Outsourcing (ITO), Shared Service Centers (SSC), and Research and Development (R&D) represent significant growth potential for North Macedonia. These industries align with global trends emphasizing digital transformation and cost-effective solutions.
Key Macroeconomic Indicators
Private investment
23.0%
In December 2024, investment accounted for 34.4% of the nominal GDP, a significant increase from 23.0% in the previous quarter
GDP Growth 2024
3.2 %
North Macedonia’s economy grew by 3.2% year-on-year in the fourth quarter of 2024, marking the highest quarterly growth since Q2 2022
Public investment
2.8%
Public investment projects contributed substantially to the economy in 2024, supporting a GDP growth of 2.8% despite external headwinds and weak export performance.
Foreign Direct Investment (FDI)
$696.26 million
FDI surged dramatically in 2021 to $696.26 million, an increase of over 8,900% from 2020’s very low base of $7.69 million.
Corporate Tax
10%
The corporate tax rate in North Macedonia is a flat 10% as of 2025
VAT
18%
The standard VAT rate is 18%, which applies to most goods and services as well as imports
Personal Income Tax
10%
North Macedonia applies a flat personal income tax rate of 10% as of 2025. This rate applies broadly to income from employment, self-employment, royalties, capital gains, rental income, and other taxable income categories
Labor Market and Workforce
765,430 total labor force
The total labor force in North Macedonia is forecasted to be approximately 765,430 persons in 2025, within a total population of about 1.81 million. The employment rate is around 46.3% in Q1 2025, showing a slight increase from 46.2% in Q4 2024. The employment rate forecast for 2025 is about 51.96%, indicating expected improvement.
BUSINESS SERVICE SECTOR IN FIGURES
Shared Service Centers (SSC) and Business Process Outsourcing (BPO) are the foundation of modern business strategies for corporations around the world. In a globalized economy, companies now need to be able to outsource to foreign locations. With new technology, it is no longer limited to a particular location.
200 m
estimated employment in EU 27
40 m
estimated employment in the business services sector
50 m
estimated employment in the business services sector by 2030
10m
estimated employment in knowledge intensive services in 2023