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According to the IMF, North Macedonia's banking system has demonstrated resilience in the face of significant global shocks. This resilience is attributed to robust balance sheets that were in place before the pandemic, coupled with proactive measures implemented by the central bank to reinforce them. Currently, the banks maintain liquidity, strong capitalisation, and profitability. Concurrently, there is sustained growth in deposits and credit, and non-performing loans (NPLs) are at historically low levels
The recently implemented loan-to-value ratios and debt service-to-income ratios play a crucial role in preserving financial stability by alleviating pressures within the real estate market. Given the current environment marked by robust bank profitability, the staff endorses the objective of the National Bank of the Republic of North Macedonia (NBRNM) to enhance capital requirements. Noteworthy advancements in regulations related to credit risk management, banks' disclosure practices, and the introduction of a new bank-resolution law are commendable steps. Looking to the future, prioritising enhancements to the bank deposit insurance law is imperative.
Net profit of North Macedonia’s banks totalled MKD12.1bn (€103.2mn) at the end of September 2023, of which the majority was generated by the five largest banks in terms of assets. (MKD11bn). The net profit in the first nine months of 2023, was higher by an annual 49%.
5.6.3 Industry
North Macedonia's industrial production went up by 1.7 % in the first ten
months of 2023, according to statistics office data.
Through October, the output in the manufacturing industry edged up 0.5%, while in the mining sector it fell 0.7% y/y. In the utilities sector, the output jumped 18.6%.
The industrial production experienced fluctuations throughout the entirety of 2023.
In the manufacturing sector, the repair and installation of machinery and equipment experienced the biggest growth in the first ten months of the year, of 141%, followed by production of pharmaceutical products (23.9%)
Real GDP growth in industry, according to the World Bank, is seen at 3.4% in 2024, up from 2.1% in 2023.
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