Former Yugoslav Republic of Macedonia: 2018 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Former Yugoslav Republic of Macedonia
IMF Staff Country Reports, January 29, 2019
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- Former Yugoslav Republic of Macedonia: 2018 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Former Yugoslav Republic of Macedonia
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Bibliographic details
- Published: January 29, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484396704.002
Summary and key findings
- More than twelve years after achieving candidate status, FYR Macedonia’s prospects for opening accession negotiations with the European Union are looking hopeful for the first time.
- The end of the political crisis has revived structural reforms, but investment is yet to gain a strong footing amid lingering uncertainties.
- Structural policies should focus on addressing longstanding weaknesses in the labor market, judiciary, and public administration to boost productivity and achieve faster income convergence.
- Macroeconomic policies should support this goal by rebuilding buffers and maintaining financial stability.
Macroeconomic outlook and policy priorities
- Rebuild fiscal and financial buffers to strengthen resilience.
- Maintain financial stability while supporting growth-enhancing reforms.
- Support investment recovery by reducing policy uncertainty and improving the business environment.
Structural reforms and competitiveness
- Priority areas for structural policy:
- Labor market reforms to address longstanding weaknesses.
- Judicial reform to improve rule of law and investor confidence.
- Public administration reform to enhance efficiency and service delivery.
- Goal: boost productivity and achieve faster income convergence with advanced peers.
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- Country Report