North Macedonia Q2 GDP Growth at Over 1-Year High

North Macedonia’s economy expanded by 4.3% year-on-year in the second quarter of 2026, accelerating from 3.1% in the previous three-month period and marking the strongest growth since Q4 2024. Growth was driven by household expenditure (3.3% vs 2.6% in Q1) and gross investments (16.5% vs 1.5%). Net external demand also contributed positively, with both exports (10.4% vs 6.2%) and imports (12.5% vs 5.2%) rising. Meanwhile, growth eased in final consumption (2.8% vs 3.2%) and public expenditure (0.8% vs 5.5%). On the production side, the most notable increases were recorded in mining and quarrying (3.9% vs -0.8%), manufacturing (4.1% vs -0.2%), and construction (21.9% vs 7.2%), while output declined in agriculture, forestry, and fisheries (-0.1% vs 2.9%) and public administration and defense (-1.3% vs 2.5%). On a seasonally adjusted quarterly basis, GDP growth accelerated to 1.3% in Q2 from 0.4% in the previous quarter, marking the strongest growth since Q1 2014.

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.