North Macedonia in 2025: Economic Growth, Reforms, and European Integration Challenges

9 September 2025 Economics

Economic Progress and Development

North Macedonia’s economy is showing positive momentum, with growth expected to reach 3.3 percent in 2025. This growth is primarily driven by stronger domestic demand and significant public investment projects.

In a significant development for the country’s infrastructure, the government has begun construction on its largest renewable energy project to date – a €430-million wind farm that aims to provide power to approximately 100,000 households.

Challenges and Reforms

While the National Bank has effectively managed recent challenges, including bringing down inflation after the energy cost shock, risks remain, particularly regarding persistent core inflation driven by strong wage growth.

The country faces significant challenges as growth has lagged behind regional peers over the past decade, and convergence with the EU has stalled. High emigration has resulted in a declining population, threatening potential growth. To address these issues, accelerating structural reforms is crucial for achieving objectives and supporting the country’s path to EU accession.

European Integration and International Support

The European Union has introduced a new €750 million Reform and Growth Facility, acknowledging North Macedonia’s ambitious agenda. The country is being urged to focus on implementing reforms, particularly in public administration, governance, the rule of law, and anti-corruption policy.

North Macedonia has demonstrated its commitment to EU values, including making historic changes and implementing bold reforms. However, its accession process has faced obstacles due to bilateral disputes, leading to public frustration and disillusionment with the EU.

Cultural Heritage and Traditions

The country continues to maintain its cultural heritage, as evidenced by the recent Galicnik Wedding celebration – a significant annual cultural event held in the picturesque mountain village of Galicnik, which preserves and honors traditional customs.