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Despite this growth, green loans remain a modest portion of the total loan portfolio, rising from 2.2% in 2019 to 4.4% by the third quarter of 2024.
North Macedonia's banking system comprises 14 private banks, one state-owned institution – the Macedonian Bank for Development Promotion – and two savings houses.
5.8.3 Industry
The key industries in North Macedonia include ICT, agribusiness and food processing, textiles and clothing, automotive components, wine production and the electro-metal industries.
North Macedonia is part of three multilateral free trade agreements: the Stabilisation and Association Agreement (SAA) with EU member states, the EFTA Agreement with Switzerland, Norway, Iceland and Liechtenstein, and the CEFTA Agreement, which includes North Macedonia, Albania, Moldova, Serbia, Montenegro, Kosovo and Bosnia and Herzegovina.
In addition to these, the country has established bilateral free trade agreements with Turkey and Ukraine. These trade partnerships collectively provide North Macedonia with duty-free access to a market of over 650mn consumers. Since 2003, North Macedonia has also been a member of the WTO, further integrating its economy into global trade networks.
5.8.4 Major Sectors & Companies
The automotive components sector plays a crucial role in North Macedonia’s economy, with the country hosting a number of factories producing car parts.
In November 2024, German car parts manufacturer Kostal announced the third phase of its investment cycle in North Macedonia, focused on producing chargers for electric and hybrid vehicles. This €50mn will involve the addition of new production lines and the creation of additional jobs.
In June 2024, Netherlands-based VDL Groep took over key segments of Belgian bus manufacturer Van Hool, including its production facility in North Macedonia. Despite the bankruptcy of Van Hool in Belgium, operations in North Macedonia remained unaffected by this development.
Van Hool's North Macedonian unit affirmed its commitment to preserving jobs and maintaining wage levels.
Belgium-based Avesta Battery and Energy Engineering announced the construction of a factory in the industrial zone in western town of Kicevo to produce electronic batteries for cars. This €40mn investment
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