European Commission: Wages and GDP up in North Macedonia, but productivity lags
The European Commission reports rising pay and output in North Macedonia, but stresses that weak productivity and a persistent grey economy hamper competitiveness.
Economists say the country's competitiveness remains the missing ingredient despite recent improvements, a view that aligned with the European Commission's latest assessment of North Macedonia's economic progress.
Key findings from the Commission
The European Commission noted that both wages and gross domestic product have increased, signalling positive momentum in the economy. However, the report highlights a persistent shortfall in productivity that limits longer‑term gains.
Analysts pointed out that the rise in pay and output has not been matched by enough productivity growth to improve the overall competitiveness of businesses across the country.
In addition to productivity concerns, the Commission singled out the grey economy and informal work as long‑standing obstacles to doing business in North Macedonia. Those practices reduce tax revenues, distort competition and hinder formal investment.
Economists and business groups say the findings underline the need for policies that promote higher value added activity, support workforce upskilling and bring informal activity into the formal sector.
Policymakers face the challenge of turning short‑term improvements in wages and GDP into sustained productivity gains that can raise living standards and strengthen the country’s economic resilience.
Photo: press material from the event
