World Bank projects 3.2% economic growth for North Macedonia in 2027

North Macedonia is expected to record economic growth of 3.2% during 2027, according to World Bank forecasts. This is an increase of 0.3% compared to 2026, when the forecast was 2.9%. The report also notes a reduction in poverty and unemployment, influenced by foreign direct investment, as well as expanded trade cooperation.

However, the international institution identifies a series of factors that could hinder further economic development. Among the listed risks are heavy dependence on imported energy and fuels, the rapid growth of public debt, the mismatch between wage growth and productivity, population aging, emigration, as well as weaknesses in governance and corruption. The document, presented before Prime Minister Hristijan Mickoski, was described as a useful basis for upcoming reforms.

Prime Minister Hristijan Mickoski said that, due to these challenges, the law on labor relations has been amended, enabling people who feel capable to continue working until the age of 67-68, and in some sectors even up to 70. According to him, this is a trend that is spreading across Europe and the world. Mickoski announced that 709,000 workers are currently registered and that, to guarantee sustainable economic growth, the number of employed people must not fall below 800,000. He said an additional 90,000 new employees are needed who would contribute with revenue for the state, while expressing concern that in 15-20 years the number of employed people could drop to 500,000.

The opposition sees the economic situation differently. From SDSM they say that GDP per capita is only one third of the European Union average and they dispute the claim that North Macedonia is the third economy in Europe.

According to the opposition, the World Bank did not congratulate the government, but rather found that the country has remained in the same category for years. SDSM assesses that new jobs are characterized by low productivity and wages, while the diaspora has exceeded half a million. The party described as failed the narratives about being ranked “third in Europe,” about the fastest growth, and about pensions 16 times higher.

The World Bank expects North Macedonia’s economy to grow by 3% also during 2028. For Western Balkan countries, economic growth forecasts range from 3.1% in 2026 to 3.4% in the next two years. /Alsat/