North Macedonia’s economy fell by a real 0.7% y/y in the fourth quarter of 2020, improving from a 3.3% contraction in the previous quarter, estimated data released by the Macedonian Statistics Office indicated on March 2.

In the entire 2020, the economy contracted by 4.5% following a 3.6% growth in 2019.

The contraction is slightly lower than the central bank revised projection in December for a GDP decline of 4.9% due the consequences of the coronavirus (COVID-19) pandemic.

GDP totalled MKD187.8bn (€3.1bn) in current prices in the fourth quarter of the year, up from MKD185.5bn in the same period a year earlier.

The biggest annual decrease was registered in the sector of rts, entertainment and recreation, by 3.6%, following by agriculture and forestry (-3.2%).

The key manufacturing sector was flat y/y.  The construction fell 1.4% y/y, while mining and quarrying edged down 0.6%. The IT sector was down by 0.4% y/y while wholesale and retail sector ticked down 0.1% y/y.

According to the statistics office, the largest annual increase in the last quarter was recorded in the group of real estate activities of 2%, followed by the financial and insurance sector which rose by 1%.

In the period under review, household final consumption, including non-profit institutions serving households, dropped by 4.3%, while general government consumption went up 6.6% y/y. Gross capital formation decreased 13% y/y.

In the same period, exports of goods and services went up by 1.3%, while imports of goods and services were 7.2% lower.