Macedonia's democracy was ranked 68th according to a survey of 167 countries by the Economist Intelligence Unit (EIU).
Macedonia was placed in flawed democracy section, and the country is behind Croatia, Serbia and Montenegro.
With countries ranked according to their electoral process, government functioning, political participation, political culture and civil liberties, 17 EU member states made it on to the 28-strong 'full democracies' list.
The rankings of Balkan countries: Serbia is ranked 55, Montenegro 58, Croatia 51. Bosnia and Herzegovina 87 sit in hybrid regime section.
Sweden has a near perfect democracy, followed by Iceland, the Netherlands, Norway and Denmark.
Over half of the world's population lives in some sort of democracy, but just 13 percent in full democracies, according to this study. Meanwhile, with 55 countries falling in the worst category, almost 40 percent of people live under authoritarian rule.