EU-North Macedonia 22nd Subcommittee on Economic and Financial Issues and Statistics
The 22nd Subcommittee meeting on Economic and Financial Issues and Statistics under the Stabilisation and Association Agreement between the EU and North Macedonia, took place on 7 October online. Representatives from the European Commission (EC) discussed recent developments with relevant North Macedonian authorities. The sub-committee is a platform to exchange views on developments in economic, monetary and financial affairs and current challenges on a yearly basis.
In 2024, economic growth rose to 2.8%, propelled by investment and public consumption, but negatively impacted by net exports. Inflation increased due to rising food prices, despite government price controls, averaging 3.5%, down from 9.4% in 2023. The unemployment rate fell to 12.5%, though the labour market still faced challenges like low participation, especially among women, and skill mismatches. The current account returned to a deficit, and the fiscal deficit was 4.4% of GDP, exceeding initial plans, but below revised projections. The government aims to reduce the deficit to 3% by 2027. Growth in 2025 is expected to be fuelled by domestic demand and public infrastructure projects, such as Road Corridor 8 and 10d. North Macedonia's entry into the Single Euro Payments Area (SEPA) in 2025 was welcomed, along with fund mobilization for the business environment and ongoing reform efforts.
On statistics, the Commission reiterated its commitment to supporting North Macedonia and commended the progress made. Furthermore, it underlined the importance of carrying out an agricultural census in 2026, of ensuring adequate staffing in the State Statistical Office, of assuring its access to administrative data sources and the need to continue improving transparency, consistency and timeliness of macro-economic statistics.
The Commission welcomed the adoption of the Public Internal Financial Controls (PIFC) Law. This took place in the context of the Reform Agenda, and all bylaws are expected to be adopted within 18 months of entry into force. The Commission emphasised the importance of ensuring adequate staffing. North Macedonia also provided an update on its plans for external audit in the coming year. The Commission reiterated the need to adopt a State Audit Law as soon as possible.
Finally on financial control, North Macedonia’s participation in the Anti-Fraud Coordination Service (AFCOS) seminar on 8 October 2025 was welcomed. North Macedonia presented the steps taken in aligning the national legislation with the Directive on the fight against fraud to the Union's financial interests by means of criminal law (“PIF Directive”). The Commission welcomed the steps taken in the drafting the next national anti-fraud strategy (NAFS) for the period 2026–2030 and emphasised the importance of continuing developing a track record on reporting of irregularities and cooperation on investigations.