Republic of North Macedonia

Abstract

North Macedonia’s economic outlook has deteriorated substantially due the COVID-19 pandemic. Real GDP is expected to decline by 4 percent due to a fall in both domestic and external demand. This, together with negative shocks to confidence and spillovers from global financial channels, has created an urgent balance of payments need. The elections planned for April 2020 have been postponed, implying that the caretaker government will remain in place for the next months. The Executive Board concluded the 2019 Article IV consultation on a lapse-of-time basis on January 22.