North Macedonia

North Macedonia: strong, sustained growth, 1990–2024

After independence from Yugoslavia in 1991, North Macedonia endured a difficult transition and a 2001 armed conflict before attracting foreign manufacturers to its free economic zones; the 2018 name agreement with Greece opened its path to NATO membership. Between 1990 and 2024, North Macedonia's GDP per capita grew from $2,277 to $9,292 (current US$), a compound annual growth rate of 4.2% — strong, sustained growth. Annual GDP growth averaged 1.6% with a year-to-year standard deviation of 3.5 points, reflecting relatively stable macroeconomic conditions. Structurally, agriculture's share of the economy moved from 7.2% to 6.1% of GDP (a classic decline as the economy industrialized/modernized), while services rose from 39.5% to 56.2% of GDP, underscoring a shift toward a services-driven economy. On human development, life expectancy rose from 69.0 to 76.6 years, while tertiary school enrollment moved from 25.3% to 55.0%, while the urban population share grew from 53.5% to 62.6%.

What this growth cost: Growth was not without cost: per-capita CO2 emissions fell from 4.68 to 4.00 tonnes CO2e per person; income inequality (Gini index) widened from 28.1 to 33.5; the poverty headcount ratio increased from 3.3% to 3.9%.