Macedonia’s 2007 IT Market Rises 63.8% to $164 million, Emerges as Regional Pace-Setter - IDC

The record growth was mainly due to massive IT investments by the government and the telecommunications sector, continued spending in the financial sector, falling equipment prices, and a cut in Value Added Tax (VAT) , IDC said in a statement posted on its website.

The Macedonian government provided equipment on a large scale to the education sector, lowered VAT [from 18% to 5%] on computer-related purchases, which led to increased notebook sales to graduate students, and financed basic IT and Internet training for 22,000 people, the statement said.

According to IDC, hardware remained the biggest segment on the Macedonian IT market, surging by an annual 88.3% in 2007, and representing almost three-quarters of the total market. IT services came second with an annual growth of 22.6% in 2007 and a 16% share of total IT spending. Packaged software is the third largest segment with 10% of the market, and an annual growth of 15.2% in 2007.

"A dynamic economy, together with government efforts to build an information society, will further drive Macedonia's IT market in coming years" IDC Adriatic’s managing director Boris Zitnik said in a statement.

IDC expects IT spending in Macedonia to increase at an average annual rate of around 8% during the five-year forecast period, to $240 million in 2012.

IDC Adriatic is based in Zagreb, Croatia. The company makes analyses and forecasts for the IT markets in Croatia, Slovenia, Serbia, Bosnia and Herzegovina, Macedonia, Montenegro, and Albania.

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