Background:  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. The undetermined status of neighboring Kosovo, implementation of the Framework Agreement, and a weak economy continue to be challenges for Macedonia.

Location:  Southeastern Europe, north of Greece

Geographic coordinates:  41 50 N, 22 00 E

Area:  total: 25,333 sq km
land: 24,856 sq km
water: 477 sq km

Climate:  warm, dry summers and autumns; relatively cold winters with heavy snowfall

Natural resources:  low-grade iron ore, copper, lead, zinc, chromite, manganese, nickel, tungsten, gold, silver, asbestos, gypsum, timber, arable land

Population:  2,055,915 (July 2007 est.)

Ethnic groups:  Macedonian 64.2%, Albanian 25.2%, Turkish 3.9%, Roma (Gypsy) 2.7%, Serb 1.8%, other 2.2% (2002 census)

Religions:  Macedonian Orthodox 64.7%, Muslim 33.3%, other Christian 0.37%, other and unspecified 1.63% (2002 census)

Languages:  Macedonian 66.5%, Albanian 25.1%, Turkish 3.5%, Roma 1.9%, Serbian 1.2%, other 1.8% (2002 census)

Capital name:  Skopje
geographic coordinates: 42 00 N, 21 26 E
time difference: UTC+1 (6 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October

Administrative divisions:  85 municipalities (opstini, singular - opstina); Aerodrom (Skopje), Aracinovo, Berovo, Bitola, Bogdanci, Bogovinje, Bosilovo, Brvenica, Butel (Skopje), Cair (Skopje), Caska, Centar (Skopje), Centar Zupa, Cesinovo, Cucer-Sandevo, Debar, Debartsa, Delcevo, Demir Hisar, Demir Kapija, Dojran, Dolneni, Drugovo, Gazi Baba (Skopje), Gevgelija, Gjorce Petrov (Skopje), Gostivar, Gradsko, Ilinden, Jegunovce, Karbinci, Karpos (Skopje), Kavadarci, Kicevo, Kisela Voda (Skopje), Kocani, Konce, Kratovo, Kriva Palanka, Krivogastani, Krusevo, Kumanovo, Lipkovo, Lozovo, Makedonska Kamenica, Makedonski Brod, Mavrovo i Rastusa, Mogila, Negotino, Novaci, Novo Selo, Ohrid, Oslomej, Pehcevo, Petrovec, Plasnica, Prilep, Probistip, Radovis, Rankovce, Resen, Rosoman, Saraj (Skopje), Skopje, Sopiste, Staro Nagoricane, Stip, Struga, Strumica, Studenicani, Suto Orizari (Skopje), Sveti Nikole, Tearce, Tetovo, Valandovo, Vasilevo, Veles, Vevcani, Vinica, Vranestica, Vrapciste, Zajas, Zelenikovo, Zelino, Zrnovci
note: the ten municipalities followed by Skopje in parentheses collectively constitute the larger Skopje Municipality

National holiday:  Ilinden Uprising Day, 2 August (1903); note - also known as Saint Elijah's Day

Flag description:  a yellow sun with eight broadening rays extending to the edges of the red field

Political parties and leaders:  Democratic Alliance [Pavle TRAJANOV]; Democratic League of the Bosniaks [Rafet MUMINOVIC]; Democratic Party of Albanians or PDSh/DPA [Arben XHAFERI]; Democratic Party of Serbs [Ivan STOILJKOVIC]; Democratic Party of Turks [Kenan HASIPI]; Democratic Renewal of Macedonia [Liljana POPOVSKA]; Democratic Union of Vlachs for Macedonia [Mitko KOSTOV]; Democratic Union for Integration or BDI/DUI [Ali AHMETI]; Internal Macedonian Revolutionary Organization-Democratic Party for Macedonian National Unity or VMRO-DPMNE [Nikola GRUEVSKI]; Internal Macedonian Revolutionary Organization-People's Party or VMRO-Narodna [Vesna JANEVSKA]; League for Democracy [Gjorgi MARJANOVIC]; Liberal Democratic Party or LDP [Risto PENOV]; Liberal Party [Stojan ANDOV]; National Alternative [Harun ALIU]; National Democratic Party-New Democratic Forces or PDK-FRO [Hysni SHAQIR]; New Social Democratic Party or NSDP [Tito PETKOVSKI]; Party for Democratic Future [Alajdin DEMIRI]; Party for Democratic Prosperity or PPD/PDP [Abduljhadi VEJSELI]; Party for European Future or PEI [Fijat CANOSKI]; Social Democratic Alliance of Macedonia or SDSM [Radmila SEKERINSKA]; Socialist Party of Macedonia or SP [Ljubisav IVANOV-ZINGO]; Union of Romas or SR [Saliu SHABAN]; United Party for Emancipation or OPE [Nezdet MUSTAFA]

Economy - overview:  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. However, the leadership's commitment to economic reform, free trade, and regional integration was undermined by the ethnic Albanian insurgency of 2001. The economy shrank 4.5% because of decreased trade, intermittent border closures, increased deficit spending on security needs, and investor uncertainty. Growth barely recovered in 2002 to 0.9%, then averaged 4% per year during 2003-06. Macedonia has maintained macroeconomic stability with low inflation, but it has lagged the region in attracting foreign investment, and job growth has been anemic. Macedonia has an extensive gray market, estimated to be more than 20 percent of GDP, that falls outside official statistics.