Macedonia’s IT market skyrocketed 63.8% year on year in 2007, to almost $164 million. In local currency, year-on-year growth was 53.7%. According to a study from market research company IDC, the record growth was due mainly to massive IT investments by government and telecommunications, continued spending in the finance sector, and falling equipment prices, together with decreased VAT for computer-related purchases.

“Macedonia’s government undertook several notable actions last year, including providing equipment on a large scale for the education sector and lowering the VAT on computer related purchases, which increased notebook purchases of graduate students in the country, and financing basic IT and Internet training for 22,000 inhabitants. These developments boosted the market in 2007 and made Macedonia’s IT market the fastest growing among countries in the Adriatic region,” says Boris Zitnik, Managing Director, IDC Adriatics. “A dynamic economy, together with government efforts to build an information society, will further drive Macedonia’s IT market in coming years.”

Hardware continued to be the biggest and most dynamic segment of the Macedonian IT market, surging 88.3% year on year in 2007 to represent almost three quarters of the total market there. IT services were the second largest segment, comprising 16.0% of total IT spending, after 22.6% year-on-year growth in 2007. Packaged software came third with 10% of the market, having expanded 15.2% year on year in 2007.

IDC expects IT spending in Macedonia to increase at an average annual rate of around 8% during the five-year forecast period to reach $240.00 million in 2012.

IDC’s Macedonia IT Market 2008-2012 Forecast and 2007 Vendor Shares (IDC ESQ11Q) presents the IT market in Macedonia and forecasts total IT expenditures by technology through 2012. The study contains market size, vendor market shares, and growth projections for hardware, packaged software, and IT services provision. It analyzes market trends and provides valuable insight into the main drivers of individual market segments.