North Macedonia’s Trade Relations and Investments
This year, our country has maintained its position as the third most significant trading partner of North Macedonia, according to the latest data from the authorities of the neighboring country, holding the same rank as in 2022. Meanwhile, foreign investments in North Macedonia continue to flourish, particularly from major international companies in the automotive component manufacturing sector, especially in relation to electrification.
According to preliminary data from the State Statistical Office of North Macedonia, which was released by the Greek Ministry of Foreign Affairs, the total value of goods exported from the Republic of North Macedonia during the period from January to May 2024 reached €3.24 billion, showing a decrease of 8.8% compared to the same period last year. In contrast, the value of goods imported during this period amounted to €4.64 billion, marking a 1% increase compared to the previous year.
The trade deficit for North Macedonia during January to May 2024 stood at €1.4 billion, with the coverage of imports by exports during this period at 69.9%. In terms of overall foreign trade volume, the primary trading partners of the Republic of North Macedonia during this period were Germany, the United Kingdom, Greece, Serbia, and China, in that order.
It is noteworthy that the total Greek exports to North Macedonia in 2023 amounted to €1.04 billion, reflecting a decrease of 23.4% due to falling energy prices. Exports of products from North Macedonia to Greece in 2023 reached €306.5 million, showing a slight decrease of 6.5% compared to the previous year. Nevertheless, the trade balance remained in surplus in favor of Greece, with a surplus of €737.3 million (down from €1.03 billion in 2022), thus securing our country’s third-place position as a trading partner of North Macedonia.
New Investments Announced
A new investment of €20 million has been announced by the government of North Macedonia, according to the same source. This project involves the German company EPSOTEH, which, in collaboration with the Belgian company AIM, will construct a manufacturing facility in the municipality of Petrovec. The factory will produce components for the automotive industry, railways, and healthcare.
Construction work on the new factory is expected to commence immediately, creating 110 anticipated jobs, with part of the investment earmarked for establishing a Research and Development Center. Earlier in 2023, three major foreign investments were announced, including one from the Belgian company AVEE (Avesta Battery and Energy Engineering) worth €40 million, and another from the German company Kostal, valued at €50 million, both focusing on components and materials for electric vehicles, as well as from the Taiwanese multinational Yageo.
With the previous investment phases from Kostal in North Macedonia, their total investments will reach €150 million, while Yageo’s investment is expected to exceed €200 million, aimed at constructing and operating two factories in Skopje and Stip. This is anticipated to be the largest Greenfield investment in the neighboring country, with the potential to create 4,000 new jobs.
