(e)estimation (p) forecast

Source: Cofacerating

Macedonia has historically attracted higher FDI per capita than most other countries in the Western Balkans region, primarily through privatization. About 40 foreign investments entered the country via privatization between 1995 and 2001, accounting for a substantial portion of the total FDI. The majority of foreign investment comes from Hungary, followed by Greece.

Macedonia is a small, but rather diversified economy, which may provide foreign investors with a number of opportunities. A free economic zone was established in Kavadarci ("Nickel Valley") in 2000. It currently houses eight companies, most notably the Italian SOL SEE Group-Spa, which produces and distributes medical products for export throughout Europe.

Among the most promising opportunities from the vantage point of 2006 are those in agriculture and agribusiness and food and beverages processing. Major activity in the food and beverage processing industry includes the canning of fruits and vegetables, and the processing of milk and meat. The fruit and vegetable subsector benefits from the local supply of raw materials. The country’s major agricultural products include wheat, corn, tomatoes, rice, peppers, livestock, and various other fruits and vegetables. Net exports include fruits, vegetables, lamb, and related products; net imports include sugar, butter, milk, and meats other than lamb.

Other sectors considered to have good investment potential include: finished textile and leather goods; tobacco; tourism; steel and metal fabrication; the chemical and pharmaceutical industries; vehicle and bus assembly; electrical equipment and electric motors; construction; infrastructure; banking; and telecommunications.