BAKU, Azerbaijan, February 28. North Macedonia’s economy grew by 2.4 percent in 2024, surpassing expectations set earlier in the year, according to the European Bank for Reconstruction and Development's (EBRD) latest report, Trend reports.
According to the bank, this growth was mainly driven by strong government and private consumption, supported by easing inflation and expanded credit.
While industrial output declined and the trade deficit widened by 16.1 percent to 3.28 billion euros - due to weaker demand from the eurozone - the overall performance was stronger than anticipated. The report also noted that the country’s sovereign credit rating was reaffirmed by S&P in January 2025, with a stable outlook.
Looking ahead, growth is projected to reach 3 percent in both 2025 and 2026.
The EBRD highlighted that the country’s openness to trade, particularly with eurozone economies, remains a source of vulnerability, especially given the ongoing trade tensions impacting sectors like the German automotive industry. However, the report also pointed to the potential for higher growth if structural reforms are implemented effectively and ambitious capital investment projects are carried out successfully, although challenges around fiscal space and the capacity to execute these projects remain.
