Page 102 - SE Outlook Regions 2024

The retail sales index was mostly down throughout 2023, with the biggest increase in March (10.6%) and the largest decline in August (-9%).
Greek retail group Veropoulos is expanding its presence in North Macedonia with future plans including the opening a combined Vero Market and Jumbo store in the city of Strumica in 2024.
The investment in the new store, which will cover an area of 5,000 square metres, is planned at €3mn.
In October 2023, Diamond Mall, a project by Turkish investor Limak Holding worth €350mn, officially opened its doors for visitors in North Macedonia's capital Skopje promising to breathe new life into the economy and generate over 1,000 job opportunities.
The municipality of Kumanovo announced in September that it sold a land plot to the local unit of German retail giant Lidl for €5.3mn intended for the construction of a warehouse in the new industrial zone near the city.
Lidl's journey towards expansion in North Macedonia began in mid-February 2021, marked by the establishment of a new corporate entity in the country. At the time, the retail powerhouse unveiled its first store plan, confirming that it would be situated in the capital city of Skopje.
According to a previous announcement, the logistic centre in Kumanovo will require an investment of €80mn.
5.6.2 Banks
North Macedonia's banks exhibit robust capitalisation and liquidity, having navigated through multiple crises in recent times. According to central bank governor Anita Angelovska-Bezoska's statement in December, the banks' resilience during these crises can be attributed to their fortified balance sheets, a strength evident even before the onset of the pandemic. In the aftermath of the pandemic, the National Bank continues its efforts to enhance the banking system's resilience by implementing macroprudential measures.
Addressing both mid-term and long-term challenges within the banking sector, the governor underscored the enduring significance of climate change as a substantial risk, alongside geo-economic fragmentation. Specifically concerning the Macedonian banking sector, over half of the total credit exposure to companies is linked to sectors sensitive to climate policies. In response, the central bank has undertaken several initiatives to mitigate climate change risks. These efforts include the adoption of a medium-term plan of activities and guidelines requiring banks to incorporate climate risks into their risk management framework. Notably, over the past four years, the proportion of green loans within the total credit portfolio of banks has more than doubled.
102 SE Outlook 2024 www.intellinews.com