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another €144mn from the EU's Western Balkans Investment Framework (WBIF).
The Bar-Boljare motorway, with a length of 165 km, is set to become one of the most expensive infrastructure projects in Montenegro with estimated costs of approximately €2bn.
In December, Montenegro’s state-owned Port of Bar signed an agreement with Germany-based Hamburg Port Consulting (HPC) to carry out a detailed analysis of local peer Port of Adria to decide on its possible acquisition. Currently, Port of Adria is owned by the Turkish company Global Ports.
HPC has two months to carry out the analysis. If it shows that the acquisition of Port of Adria would be sustainable, the two Montenegrin ports will merge into one company. The analysis should focus on financial aspects of Port of Adria’s operations. Based on its results, the government will start acquisition talks with the Turkish owner.
Singapore’s port of Tuas is interested in cooperation with the Port of Bar. According to Singapore’s Trade Minister Grace Fu, the Montenegrin port could become a hub for the Balkans.
5.8 Real Economy – North Macedonia
5.8.1 Retail
North Macedonia's retail sales rose by 2.1% y/y in October, slowing from a 3% increase in the previous month, according to statistics office data. In nominal terms, retail sales (excluding motor vehicles and motorcycles) increased by 2.6% compared to October 2023. However, the average annual inflation rate accelerated to 3.5% in the same month.
A closer look at the data shows that retail trade in food, beverages, and tobacco declined by 2.5% y/y in real terms but grew by 1.9% in nominal terms.
Compared to the reference year of 2021, the retail sales index recorded a nominal increase of 25.5% and a real growth of 2.2%.
Consumer spending in North Macedonia averaged MKD88.68bn (€1.4bn) from 2000 to 2024, peaking at an all-time high of MKD165.31bn in the fourth quarter of 2023 and reaching a record low of MKD40.87bn in the first quarter of 2000. Consumer spending rose to MKD160.17bn in the second quarter of 2024, up from MKD143.82bn in the first quarter of the year.
Trade company Skopski Pazar announced in June 2024 the sale of property worth €9.6mn in Skopje to the local subsidiary of German retail giant Lidl. The purchase marks a significant step in Lidl’s strategic expansion into the country.
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