North Macedonia Q1 GDP Growth at 1-Year Low

North Macedonia’s economy expanded by 3.1% year-on-year in the first quarter of 2026, slowing from 3.8% in the previous three-month period and marking the weakest growth since Q1 2025. Net external demand weakened as export growth decelerated (6.2% vs 9.7% in Q4), while imports accelerated (5.2% vs 3.3%). Meanwhile, final consumption rose at a faster pace (3.2% vs 2.8%), supported by stronger household spending (2.6% vs 2.0%), although government expenditure growth eased (5.5% vs 6.4%). Gross fixed investment also returned to growth (1.5% vs -3.0%). On the production side, manufacturing contracted (-0.2% vs 3.6%), while mining and quarrying also declined (-0.8% vs 2.5%). In contrast, the strongest gains were recorded in arts, entertainment and recreation (4.2% vs 3.2%), construction (7.2% vs 14.6%), and professional, scientific and technical activities (6.1% vs 8.1%). On a seasonally adjusted quarterly basis, GDP growth slowed to 0.3% in Q1 2026 from 0.9% in the previous quarter.

North Macedonia’s economy expanded by 3.8% year-on-year in the final quarter of 2025, the same pace as in the previous three-month period. Still, this marked the strongest growth since Q4 2024, driven by an increase in final consumption (6.4% vs 5.7% in Q3), which accounts for 77.9% of the GDP, as both household expenditure (2% vs 0.9%) and government spending (6.4% vs 5.7%) rose faster. Net external demand also contributed positively, with exports (9.7% vs 3.4%) increasing more than imports (3.3% vs 9.9%). Meanwhile, gross investments declined by 3%, a sharp reversal from a 30.6% rise in Q3. On the production side, the most notable increases were posted in the construction sector (14.6% vs 21%) and professional, scientific and technical activities; administrative and support service activities (8.1% vs 6.1%). On a seasonally adjusted quarterly basis, GDP advanced by 0.9% in the fourth quarter, unchanged from the preceding quarter. In 2025, the economy grew by 3.5% compared to 2024.

North Macedonia’s economy expanded 3.8% year-on-year in the third quarter of 2025, the fastest pace since Q4 2024, accelerating from an upwardly revised 3.5% growth in Q2. The acceleration was mainly driven by a surge in gross fixed capital formation, which accounts for 31.1% of GDP, jumping 30.6% (vs 5.4% in Q2). Government spending also contributed, rising 5.7% (vs 3.5%). In contrast, household consumption slowed to 0.9% growth (vs 3.1%). External trade weighed on the expansion, with exports rising 3.4% (vs 8.5%) while imports climbed 9.9% (vs 8.1%). On a seasonally adjusted quarterly basis, GDP increased 0.8% in Q3, moderating from a revised 1.1% growth in Q2.