North Macedonia faces economic tension amid rising agricultural costs

North Macedonia is facing significant economic tension as agricultural production costs rose by 6.8% in August, while output prices fell by 2.2%. Key cost drivers include transport equipment (+19.6%), energy and fuels (+15.8%), and machinery (+13.4%). Specifically, rice farmers report losses, with production costs at 25 denars per kilogram against purchase prices of only 18 to 20 denars.

Political friction is intensifying over the nation's fiscal health. SDSM leader Venco Filipce criticized Prime Minister Hristijan Mickoski's administration, citing a massive budget deficit and a sharp decline in foreign investment, which fell to 18 million euros in the latest quarter compared to 250 million euros during previous SDSM-led governments. Filipce also highlighted the rising cost of living, noting that the union basket has increased by nearly 1,000 denars.

In response, Prime Minister Mickoski, during a visit to the United States, defended the government's performance. He highlighted a 4.3% GDP growth in the second quarter and noted that inflation remains lower than the EU average. Mickoski also met with US Secretary of State Marco Rubio in New York to reinforce the strategic partnership between the two nations.