World Bank upgrades North Macedonia's GDP growth

Real GDP growth of 3.1 percent in 2025, and 3 percent in 2026 and 2027, shows the latest World Bank projections for North Macedonia. According to the bank's latest report, the projections have been upgraded by 0.4, 0.3 and 0.2 percentage points respectively compared to the spring report, CE Report quotes MIA.

According to the World Bank's Western Balkans Regular Economic Report, growth in the Western Balkans is expected to moderately accelerate in 2026 and recover more robustly in 2027, supported by stronger exports and investment as uncertainty in the global economy eases.

In 2025, economic growth in the Western Balkans slowed as inflation dampened consumption and heightened uncertainty constrained trade and investment, despite robust wage and credit growth. Fiscal policy, while somewhat eased, remained disciplined, with the deficit being below 3% and public debt continuing a downward trajectory.

The Western Balkans Regular Economic Report forecasts that the combined economic growth of Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia will reach 3.0% in 2025, which is 0.2 percentage points below previous projections. Growth is anticipated to accelerate to 3.1% in 2026 and 3.6% in 2027.

Xiaoqing Yu, World Bank Division Director for the Western Balkans, says the Western Balkans is making progress in narrowing the development gap with more advanced European Union economies, but growth remains insufficient to meet people’s aspirations.

"To help the region become a modern economy, it is important to rethink jobs strategies—such as encouraging greater labor market participation, improving skills of the population, and boosting firms through digital upgrades," says Yu.

Photo: World Bank