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North Macedonia – Macroeconomic Snapshot

October 2019.
North Macedonia – Macroeconomic Snapshot More on
North Macedonia

Political scene /

- After signing the Prespa Agreement in June 2018, North Macedonia finally changed its name, ending a decades-old dispute with Greece,
- The name change started the normalisation of North Macedonia’s relations with neighbouring Greece,
- The new name North Macedonia paved the way for the country to become the 30th NATO member, after existing NATO members signed the Accession Protocol in February 2019, which is currently in the process of ratification.
- EU member-leaders agreed to start membership talks with North Macedonia in October 2019.
- EU-accession negotiations should recover investors’ confidence and attract more FDI.

Investment climate /

- Rapid economic growth is predicted for the upcoming period,
- Foreign investments worth EUR 624,5M were made in 2018, with 18 new foreign investors entering the market in the past year and a half;
- Improvements on the labour market, caused by active labour policies which led to an unemployment rate decrease should result in demand strengthening.
- The normalisation of North Macedonia’s relationship with Greece should further impact trade balance, as higher trade volumes could be expected.
- The national currency (denar) remained stable in comparison with the euro and should remain at the same level in upcoming years.
- North Macedonia has been placed on the tenth position on the 2019 Doing Business List.
- North Macedonia is a signatory of five trade agreements – EFTA, CEFTA, SAA (Stabilisation and Association Agreement) with EU member-states, Turkey, and Ukraine.
- The country signed agreements for the avoidance of double taxation and investment protection treaties with many European countries.
- The “One-Stop-Shop” system enables investors to register their businesses four hours after the application submission – though, in practice, the process takes between one to two business days.

Partners

Ebrd

Strategic partner

Karanovic Nikolic

Content partner

Confida

Content partner

I&F McCann

Communications partner