INVESTMENTS IN FYROM

FYROM became independent from the former Yugoslavia, in 1991. The first years of the transition, the country had specific difficulties, such as the exclusion of the country from the traditional markets of former Yugoslavia, the loss of funding from the federal budget, the economic sanctions of the United Nations, the commercial embargo which was imposed by Greece in the period 1993-1995, as part of the conflict regarding the name of the country.

As a result, inflation has soared over 1,600% in 1992, while the economic activity declined in 1994 over 20%. The war in neighbouring Kosovo in 1999 led to the entrance of many Albanian refugees. The uncertainty of war in combination with the internal conflicts of minorities, led the country into political crisis.
In 2001, the GDP decreased by 4.5%, while the budget deficit soared to 6.3% of the GDP.
Since 2002 the country has a positive growth. In 2004 the Stabilisation and Association Agreement with the EU is activated, which provides a political dialogue and bilateral relations that would contribute to the development of the economic cooperation and the free trade and the harmonization of legislation of FYROM with this community.
As a consequence of the global economic downturn, FYROM has witnessed a reduction of the foreign direct investments, and credits, as well a large trade deficit, although the financial system remained healthy. Macroeconomic stability was maintained by a consistent currency policy that kept the domestic currency fastened in relation to the euro in regards to the detriment of rising interest rates.
The external debt of the country amounts to $ 7,855 billion and is far below from the level of 60%, which the EU sets.
Today FYROM is one of the most popular places for consolidation of Greek investments abroad. The reasons are the proximity, low-wages, the low tax rates and finally the friendly legal framework regarding foreign investments.