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3.8.3 Industry
According to Invest North Macedonia, the ITC sector is the
fastest-growing sector of the country’s economy.
Agribusiness, including the wine industry, is another fast-growing
industry with an increase of over 10% in the last few years.
The textile industry is one of the most developed and diversified
sectors of the economy in terms of industrial production, employment,
and export earnings and the second biggest industrial sector of the
country after metallurgy.
The automotive sector enjoys dynamic development and growing
importance for the country’s economy.
Energy market developments in North Macedonia included further
construction of an internal gas distribution network, continued
liberalisation of the electricity market, and increased regional
cooperation on electricity and gas interconnections.
The automotive industry is an important part of North Macedonia’s
economy as the country already has a dozen factories producing car
parts. In November an official from the local unit of German car parts
maker Kostal announced that the plant in Ohrid will produce systems
for Volkswagen's hybrid vehicles in the near future. Kostal is present in
the country with its first brownfield investment project since 2016.
Despite the challenges Kostal will start the third investment phase in
the existing factory in Ohrid with an additional investment of over
€50mn in the next three years and over 400 new jobs.
3.8.4 Energy & power
As other countries in the region North Macedonia is struggling to
secure gas and electricity amid the energy crisis stemming from the
war in Ukraine and to diversify energy sources due to its dependence
on Russian gas.
To help the companies the government decided to provide cheaper
electricity for basic foodstuff producers at less than €100 per MWh,
which is half the price on the regulated market. The measure is
expected to quickly stabilise the market, which can lead to a lowering of
basic foodstuff prices by 10%.
North Macedonia plans to focus on renewable energy projects as part
of its energy transition.
PM Dimitar Kovacevski said in November 2022 that the construction of
a 100-MW photovoltaic power plant in Oslomej, a PPP project of the
state-run power producer ESM, is expected to start soon.
118 SE Outlook 2023 www.intellinews.com
