North Macedonia economy — 35 years from the denar to today's challenges

Thirty-five years after declaring independence, North Macedonia's economy has undergone major institutional change and repeated shocks, but many structural problems remain. The introduction of the denar, waves of privatization, banking failures and external embargoes marked the first decades; more recently, the COVID-19 pandemic and rising living costs have added new strains.

One of the earliest and most consequential moves was the creation of a national monetary system. "The Republic of Macedonia introduces its own monetary unit that will be called the denar and it is my pleasure for you to see how these banknotes are printed," said Nikola Kljusev at the time. The denar was put into circulation in April 1992, a milestone in the country's economic independence.

From GDP figures to everyday purchasing power

In 1991 the country's gross domestic product stood at about $4.94 billion and the population was approximately 1.916 million, producing a GDP per capita of $2,578, according to World Bank historical data. Those headline numbers, however, mask the upheavals to follow: high inflation (110.8% in 1991 and worse in 1992), hard transitions in industry and large-scale privatizations.

Privatization remains one of the most contested chapters. Sales of major energy assets such as OKTA and EVN happened under different governments and at different times, sparking legal disputes and strong public debate. The collapse of the TAT savings bank left deep social scars: more than two decades after the failure, victims and observers say those responsible were not held to account, and the bankruptcy produced severe social consequences for countless depositors.

External events also left a mark. A unilateral Greek trade embargo from 1994 to 1995 lasted about 18 months and economic analysts estimate the damage at roughly $2 billion. More recently, the COVID-19 crisis first hit tourism, hospitality and retail and then propagated across the wider economy, adding a fresh shock to households and businesses.

Some indicators look nominally better: the average net wage was 3,782 denars in 1993, rose to 45,198 denars in 2025 and recent figures put it close to 50,000 denars. But higher wages have been accompanied by rising prices for housing, food and services, and the real purchasing power of those wages remains a key question. Demography also changed: the population stood at about 1.819 million at the end of 2025, roughly 97,000 fewer than in 1991.

On this anniversary citizens face renewed pressure from rising fuel prices — diesel again above 100 denars — and the larger question persists: could economic policy over the past 35 years have produced a noticeably better outcome for most people?

Photo: press material from the event