The National Bank of the Republic of North Macedonia published remarks by Governor Anita Angelovska-Bezoska at a World Bank Office conference, arguing that while the economy is gradually recovering from recent shocks, incomes remain around 42% of the European level and faster convergence requires structural reforms that raise potential growth. She noted that potential growth in the Western Balkans has almost halved over the past two decades and said the gap can be narrowed through investment in human capital (with emigration a key challenge), higher physical capital (around 30% of the European average), and stronger productivity (around 50% of the European level). On investment, she pointed to a strengthening public infrastructure cycle and faster foreign direct investment, which reached 7.1% of GDP in 2024 despite heightened geopolitical tensions and trade barriers. On productivity and innovation, the central bank highlighted steps within its remit to support financial-sector innovation, including establishing an Innovation Centre, adopting the first national fintech strategy, and preparing a payments regulatory framework that has opened a path towards membership in the Single Euro Payments Area (SEPA).
National Bank of the Republic of North Macedonia 2025-05-08
National Bank of the Republic of North Macedonia governor highlights structural reforms and fintech measures to support income convergence and a SEPA path
Governor Anita Angelovska-Bezoska of the National Bank of the Republic of North Macedonia stated at a World Bank conference that the economy is recovering, but incomes are only 42% of the European level, requiring structural reforms for faster convergence. She stressed the need for investment in human capital, physical capital, and productivity to tackle growth challenges. The central bank supports financial-sector innovation through an Innovation Centre, a national fintech strategy, and a payments regulatory framework aimed at SEPA membership.