KEY ISSUES The jobs and growth agenda should remain a top policy priority, with efforts focused on relaxing key constraints for domestic firms. Priorities include properly implementing and monitoring recent initiatives to enforce payment discipline in both public and private sector contracts, as...

North Macedonia's economy has been hit by two large external shocks. While recovering from the pandemic, the outlook deteriorated again following Russia's invasion of Ukraine and sharply rising energy and food prices. Given high dependence on energy imports, the external financing need has...

This Selected Issues paper and Statistical Appendix sheds light on the Former Yugoslav Republic (FYR) of Macedonia’s low growth and high unemployment during the 1990s by analyzing enterprise level data. The paper provides some background information on FYR Macedonia’s enterprise sector. It...

This Selected Issues paper assesses the desired level of foreign exchange reserves in the Former Yugoslav Republic of Macedonia, given its commitment to maintain the exchange rate peg. A variety of methods including popular rules of thumb, comparisons with other emerging countries, and...

This paper evaluates the 2003 Article IV Consultation and a Request for a Stand-By Arrangement (SBA) for the Former Yugoslav Republic of Macedonia (FYRM). The Article IV policy discussions focused on regaining a sustainable fiscal and external position, restarting economic growth and job...

This Selected Issues paper and Statistical Appendix formulates a medium-term fiscal framework for the Former Yugoslav Republic of Macedonia (FYRM) and discusses the tensions that are likely to arise in formulating policy measures. The paper reviews recent fiscal developments and the 2002 budget....

This 2001 Article IV Consultation highlights that after three consecutive years of generally favorable performance, the economy of the Former Yugoslav Republic of Macedonia (FYRM) suffered a setback in 2001 because of a six-month security crisis. Output declined markedly and new outlays on...

This 2009 Article IV Consultation highlights that the Former Yugoslav Republic of Macedonia’s vulnerability at the outset of the global crisis was its large current account deficit in the context of the exchange rate peg to the euro. At the same time, it benefited from a small fiscal deficit,...

This Selected Issues paper for the former Yugoslav Republic of Macedonia is examined. Real GDP growth accelerated to 5 percent in 2007 and 6 percent in the first half of 2008, from its historical average of about 3 percent. Increased investment, partly financed by FDI, is the main driver...

The economy of the Former Yugoslav Republic of Macedonia suffered a setback owing to the Kosovo crisis. The impact of the crisis, however, was less severe. Inflation remained low, the balance-of-payments position and the fiscal situation improved, and indicators of external vulnerability...