Skopje
Capital producing 45.5% of national GDP with one quarter of Macedonia's population, rebuilt after 1963 earthquake, now attracting foreign manufacturers to special economic zones.
Skopje exists because the Vardar River required a crossing and the Macedonian state required a capital. This city of 526,502 residents—one quarter of the national population—produces 45.5% of Macedonian GDP from 571 square kilometers of urban and rural territory. The ten municipalities comprising the City of Skopje concentrate political, economic, and cultural functions that define the country.
The formation era established settlement where Roman, Byzantine, Ottoman, Yugoslav, and independent Macedonian administrations successively governed. The 1963 earthquake destroyed 80% of the city, triggering international reconstruction that reshaped urban form. Yugoslav-era industrialization concentrated manufacturing in zones like Gazi Baba, while post-independence development emphasized services and foreign investment attraction.
Today Skopje operates through industry (food processing, textiles, printing, metal—30% of city GDP), trade, services, and finance. The 26,056 registered firms include 145 large enterprises but predominantly small (12,017) and very small (13,625) businesses. Trade dominates (9,758 firms), followed by business and real estate (3,839) and manufacturing (2,849). Industrial zones around the airport and Okta refinery have attracted Johnson Controls, Johnson Matthey, and Van Hool through special economic zone incentives.
By 2026, Skopje's primacy over Macedonia's economy intensifies as demographic concentration continues. The surrounding municipalities in the Skopje Statistical Region benefit from spillover effects while rural Macedonia faces continued population decline. EU accession negotiations, if they advance, will further integrate Skopje into European economic networks.