The National Bank of the Republic of North Macedonia published remarks by Governor Anita Angelovska-Bezhoska arguing that sustainable and inclusive growth in the Western Balkans depends on joint cooperation rather than isolation, with greater regional economic integration needed to strengthen the region’s growth potential. She pointed to initiatives such as the Western Balkans Common Regional Market and North Macedonia’s membership in the Single Euro Payments Area as concrete steps toward closer economic connectivity. In support, she noted that after three decades of transition the region’s income remains below half of the European Union average and that potential growth has fallen from 5% before the global financial crisis to 2.5% afterwards, with an even sharper slowdown for North Macedonia. She attributed weak performance not only to external shocks but also to structural constraints including productivity stagnation, labour outflows and low investment, citing productivity at around half of the EU level, emigration of around one in five citizens from the region (OECD), and intra-regional trade representing only 11% of total trade in 2024. Regional cooperation was presented as a channel to boost trade, foreign direct investment, knowledge and technology transfer and productivity, with the Central European Free Trade Agreement cited as having increased trade among members by about 74%. She also highlighted the need to improve institutional quality to implement reforms and to make effective use of available European Union financial support under the Growth Plan.

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