Economic Monitor
North Macedonia

GDP to grow by 3.4% in 2025, driven by expansionary fiscal policy and private consumption on the back of higher wages and pensions.

WA 2 | November 2025

The economy grew by 2.8% in 2024
GDP to grow by 3.4% in 2025, driven by expansionary fiscal policy (higher pensions and public investment) and private consumption on the back of higher wages and pensions
High public spending contributes to growth in the short term, but has fiscal implications: IMF projects a budget deficit of 5.0% of GDP in 2025; consolidation necessary
Expansionary fiscal policy contributes to higher inflation; Oct-25: inflation at 4.5%; no room for relaxation of monetary policy so far
EU accounts for more than ¾ of MKD exports of goods, partly due to integrated value chains in the automotive sector; in 2024, exports declined due to weak EU car industry
High FDI attraction in 2024: EUR 1.25 bn or 7.5% of GDP; strong DEU FDI in automotive sector
Remittances equivalent to 14% of GDP; no major dynamics in recent years

Minimum wage. Development 2012-2025 and analysis of current law
SEPA. MKD joined SEPA, operational since Oct-25; savings of ca. EUR 62 m p.a. expected
Regional comparison. Economic indicators for MKD, ALB and KOS