North Macedonia overview

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In North Macedonia we focus on:

  • Supporting Competitiveness by Enhancing Value Chains, Upskilling the Workforce, and Strengthening Governance;
     
  • Strengthening Regional Integration, Soft Connectivity and Support EU Approximation;
     
  • Supporting Green Economy Transition through a More Sustainable Energy Mix and Greater Resource Efficiency.
     

The EBRD's latest strategy for North Macedonia was adopted on 22 May 2019

North Macedonia's policy response to the coronavirus crisis

The EBRD is monitoring North Macedonia's policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.

Learn more

Current EBRD forecast for real GDP growth in North Macedonia in 2021: 4.0% 
Current EBRD forecast for real GDP growth in North Macedonia in 2022: 4.0%

A recovery is underway in North Macedonia following four consecutive quarters of negative growth between the second quarter of 2020 and the first quarter of 2021. GDP expanded by 13.1 per cent year-on-year in the second quarter of 2021, driven by both domestic and external demand. Household consumption grew strongly, supported by increasing wages, credit growth and remittances (albeit still at relatively low levels compared with other regional economies).
 
Exports of goods increased in both value and volume terms driven by the recovery in the EU, North Macedonia’s main export market, and growing in tandem with imports. Foreign direct investment increased in the second half of 2021, surpassing the respective 2019 level. However, this growth largely reflects reinvested earnings and debt instruments, and the share of new equity is very low.
 
Consumer inflation increased on the back of temporary global factors, but remains under control at 3.6 per cent year-on-year in September. Monetary policy rates are at all-time lows, supporting the economic recovery.
 
The economy is forecast to grow by 4.0 per cent in both 2021 and 2022. The main risks to the outlook relate to the speed of recovery in European markets and Covid-19 developments.
 
 
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