North Macedonia Merchandise Exports (ann. var. %)

Merchandise Exports in North Macedonia

Annual economic growth slowed in Q4, and available data for Q1 paints a mixed picture. Retail sales growth rebounded in annual terms from Q4’s downturn, as price pressures receded somewhat. Moreover, industrial output flatlined during the quarter, improving from Q4’s contraction. That said, higher interest rates likely weighed on investment. Additionally, external demand seemingly weakened, as signaled by a slowdown in tourist arrivals and merchandise exports growth. Shifting to Q2, April data points to fading momentum: Both industrial output and retail sales swung into contraction. In other news, in early May, Prime Minister Kovachevski met with U.S. Secretary of State Blinken. The latter reaffirmed U.S. support for North Macedonia’s EU accession.