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 2020: -5.0%
Current EBRD forecast for real GDP growth in North Macedonia in 2021: 3.0%

After growing at 3.6 per cent in 2019, North Macedonia’s GDP declined by 6.3 per cent year-on-year in the first half of 2020, with sharp contractionsin industry, trade, transport and tourism. On the expenditure side, government consumption recorded growth, while private consumption, investments, exports and imports all contracted strongly. At the
same time, remittances dropped by 30 per cent year-on- year. The unemployment rate increased in the second quarter of 2020, to 16.2 per cent, but stayed below the 2019 level (17.3 per cent). Inflation remained subdued, averaging 0.7 per cent year-on-year in the first seven months of 2020.
Lockdown measures and lower external demand have resulted in government revenue shortfalls, while spending on health, economic subsidies and social transfers is set to be higher than budgeted, only partially offset by lower capital expenditure. As a consequence, the general government deficit and debt are projected to increase significantly in 2020. In June 2020, general government debt stood at 51 per cent of GDP (10 percentage points higher than at the end of 2019), while government guarantees amounted to another 8 per cent of GDP. 
GDP is projected to contract by a 5.0 per cent in 2020, with growth recovering to 3.0 per cent in 2021. A faster recovery is possible but, on balance, risks to the projection are tilted to the downside. They are primarily related to social distancing being maintained for longer than expected.
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