Macedonia records lowest regional inflation amid wage stagnation, debt worries

Government officials said Macedonia’s annual inflation fell to 3.4% in June, the lowest rate among its Balkan neighbours – lower than Greece (3.9%), Croatia (4.5%), Bulgaria (5.6%) and far below Turkey (32.1%). Food and non‑alcoholic beverage prices rose only 2.5%, while clothing and footwear increased 2.1%, which the ruling VMRO‑DPMNE cites as proof that its fiscal measures are stabilising prices.

Opposition parties dispute the narrative. SDSM leaders label the figures “empty statistics”, arguing that wages remain among the lowest in Europe, the minimum wage is far below regional averages and foreign direct investment has dropped by more than 60% since the new government took office. They describe the economy as a “third economy of empty refrigerators”, warning that price stability does not reflect household purchasing power.

The International Monetary Fund projects Macedonia’s economy to grow about 3% per year between 2027 and 2031, putting it among the fastest‑growing European economies. At the same time, public debt has risen to roughly $13 billion, approaching 60% of GDP, prompting analysts to caution that the benefits of borrowing depend on how the funds are spent.

Together, the low inflation data, opposing political assessments, IMF growth forecasts and rising debt levels shape a mixed picture of Macedonia’s economic outlook.