Moving North Macedonia’s economy up the value chain
North Macedonia can accelerate growth and create more and better-paid jobs with the right reforms. A targeted set of reforms, focused on strengthening governance, unlocking the potential of private enterprise, and building the skills of workers, particularly young people, could help North Macedonia accelerate economic growth, create thousands of new jobs, and raise living standards […] Moving…
North Macedonia possesses the potential to bolster its economy through strategic reforms, according to an analysis by the World Bank Group. The North Macedonia Growth and Jobs Report underscores that without implementing reform, the country's growth is forecast to decelerate to 2.4 percent annually by 2050, which is insufficient to bridge the income gap with the European Union.
Conversely, a comprehensive reform package could boost growth to 3.8 percent, generating 53,000 new jobs for the unemployed and enhancing earnings and working conditions for 196,000 existing employees.
Carole Megevand, the World Bank Group's country manager for Kosovo and North Macedonia, emphasizes that North Macedonia's economic progress since gaining independence is notable. However, the report urges the nation to capitalize on its assets, including a youthful workforce, a strategic geographical location, and increasing integration with European markets.
The report recommends three key areas for reform: enhancing economic governance and competition, fostering technology adoption and energy efficiency, and developing skills and mobilizing the workforce.
Strengthening economic governance and competition is seen as the most impactful reform, focusing on improving public spending efficiency, creating a more equitable business environment, enhancing governance of state-owned enterprises, and refining trade policy and logistics infrastructure. Another priority is accelerating technology adoption, innovation, and energy efficiency to foster greater productivity and competitiveness, aligning with the country's green transition goals.
Lastly, developing skills and mobilizing workers through higher female labor force participation, better school-to-work transitions, expanded lifelong learning, and reduced labor market barriers is essential.
The report highlights information and communication technology (ITC) and professional services as significant drivers of quality employment in North Macedonia, with IT revenue generating nearly double the jobs compared to other industries. However, seizing this opportunity hinges on equipping workers with the necessary skills to thrive in an increasingly AI-driven world. Additionally, the care economy, particularly for women, is identified as an underutilized source of formal employment.
Written by urgent.news from Emerging Europe's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
