North Macedonia overview

Dump tracks

In North Macedonia we focus on:

Corporate and municipal sectors: The authorities have made significant efforts in recent years to enhance North Macedonia's competitiveness and attractiveness as a business-friendly environment. The EBRD will continue to assist in attracting and supporting foreign investment. We will also seek to assist local corporates and attract private sector involvement in the municipal sector with the aim of improving the quality of services.

Energy efficiency and sustainable energy: Significant transition gaps remain in the energy sector in terms of moving tariffs towards cost-recovery levels, strengthening the capacity of the regulator and developing renewable sources of energy. The EBRD's focus will be to strengthen the capacity of the regulator and to develop renewable sources of energy through projects and policy dialogue. It will also use its expertise to further promote energy efficiency in the private and public sectors.

Regional integration: The EBRD will work closely with the authorities, other IFIs and private sector investors to help improve transport networks, thereby facilitating greater cross-border trade and investment. Developing further links with the regional energy market is also a priority. The Western Balkans Investment Framework will provide the ideal policy dialogue platform for regional integration.

The EBRD's latest North Macedonian strategy was adopted on 1 May 2013

Current EBRD forecast for North Macedonia Real GDP Growth in 2018: 2.0%
Current EBRD forecast for North Macedonia Real GDP Growth in 2019: 3.0%

Following a period of economic stagnation, GDP began to recover in the second quarter of 2018. Overall GDP growth in the first half of 2018 was 1.6 per cent year-on-year. Economic activity was mainly driven by services, and particularly domestic trade, but an extremely poor performance of the construction sector was again a significant drag on growth, reflected in another drop in gross capital formation compared to the same period of the previous year. Private consumption and net exports both increased, with gross exports rising by 26 per cent, helping to keep the current account deficit at just 1.0 per cent of GDP in 2017. The central bank cut its long-term policy rate by 0.25 percentage points to 3.0 per cent in March 2018.