## Republic of North Macedonia: Selected Issues

_IMF Staff Country Reports, January 27, 2020_

## Source details

**Canonical URL:** [Republic of North Macedonia: Selected Issues](https://www.imf.org/en/publications/cr/issues/2020/01/24/republic-of-north-macedonia-selected-issues-48983)

## Other formats

- [Markdown version](/en/publications/cr/issues/2020/01/24/republic-of-north-macedonia-selected-issues-48983/index.md)
- [Structured JSON version](/en/publications/cr/issues/2020/01/24/republic-of-north-macedonia-selected-issues-48983/index.json)
- [Bundle manifest](/en/publications/cr/issues/2020/01/24/republic-of-north-macedonia-selected-issues-48983/bundle-manifest.json)

## Bibliographic details
- Published: January 27, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513527932.002

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### Summary
- This Selected Issues paper focuses on income convergence and integration of North Macedonia with the European Union (EU).
- Joining the EU has the potential to strengthen growth prospects based on the experience of other countries.
- The macroeconomic indicators of North Macedonia appear aligned with other countries at the time they started EU accession negotiations.
- The EU accession process constitutes a fundamental anchor for institutional reform momentum.
- Significant efforts to improve institutional quality in new member states took place in the years prior to EU accession to comply with Copenhagen criteria on:
  - stability of institutions, guaranteeing democracy and the rule of law;
  - the existence of a functioning market economy;
  - the capacity to cope with competitive pressure and market forces within the EU.
- The analysis shows evidence that opening of EU accession negotiations and better quality of institutions, rule of law, and control of corruption can improve growth prospects.

### Key Findings
- EU accession can strengthen growth prospects for aspiring countries, including North Macedonia.
- North Macedonia’s macroeconomic indicators are aligned with those of countries at the start of EU accession negotiations.
- Institutional improvements driven by the accession process (including rule of law and control of corruption) are important channels for enhancing growth.

### Policy Implications and Recommendations
- Pursue EU accession negotiations as an anchor for sustained institutional reform momentum.
- Prioritize improvements in institutional quality, rule of law, and control of corruption to enhance growth prospects and better position North Macedonia for integration into the EU.
- Ensure compliance with Copenhagen criteria to meet democratic, market economy, and competitiveness requirements ahead of membership.

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## Content in this bundle

- **Republic of North Macedonia: Selected Issues; IMF Country Report No. 20/25; December 27, 2019**
  - [Republic of North Macedonia: Selected Issues; IMF Country Report No. 20/25; December 27, 2019 (Markdown version)](/-/media/files/publications/cr/2020/english/1mkdea2020002.pdf.md){rel="alternate" type="text/markdown"}
  - [Republic of North Macedonia: Selected Issues; IMF Country Report No. 20/25; December 27, 2019 (PDF)](/-/media/files/publications/cr/2020/english/1mkdea2020002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2020/01/24/republic-of-north-macedonia-selected-issues-48983_