Growth and development challenges following Covid-19 in North Macedonia

Abstract

The present global situation calls into question the functioning of economies. Economies continue to address the impacts of the COVID-19 pandemic, first to protect people's health, but also to ensure the economy recovers. This current process has been interrupted by the war in Ukraine and all countries need to find ways to secure macroeconomic stability. Therefore, ensuring economic growth and finding ways to do that is critical. The subject of this paper is an analysis of the key macroeconomic indicators (real GDP growth, Inflation, Employment and Unemployment rate) in North Macedonia. Through this, the objectives of this paper are to assess their relationship and position, and draw adequate conclusions and recommendations for policymakers accordingly, which is particularly important for the growth and development challenges following Covid-19. The analysis focuses on the secondary data from the national statistical offices (State statistical office, Ministry of finance, National Bank) and Eurostat and World Bank Data. The research includes quarterly and annual data of the macroeconomic indicators for the period 2017-2022 for the North Macedonia. Also, comparative analysis of the selected countries from the region is conducted. According to a comparative analysis of selected macroeconomic indicators, the COVID-19 pandemic and the global slowdown have had a severe impact in North Macedonia. Macroeconomic stability is the main objective, considering the problem of inflation, the increase in public debt and political instability. Economic growth has obviously changed positively, but its sustainability and its impact on the quality of life in North Macedonia are important objectives to reach. Policy and measures that increase productivity are one way to meet these objectives. The research results outline the impact of COVID-19 on the economy of North Macedonia. The contribution of this paper is visible in the identification of the main challenges of economic growth in the North of Macedonia. Despite the continued presence of the Covid-19 pandemic, the energy crisis, the lack of food, disrupted supply chains, the uncertainty of the military conflict in Ukraine are also problems that the economy has to face.