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North Macedonia Special Focus Note : Agriculture (Inglês)

Agriculture is an important contributor to the North Macedonia’s economy. However, there is still ample space to improve sector performance and to unlock its full potential. Farm productivity is still low, with decreasing returns to scale and limited use of technology, while labor abounds—many farmers are caught in a low productivity trap. The agricultural support measures currently in place do not address the productivity challenge effectively. Public support for agriculture is generous compared to regional peers, but much of it targets low-value products, resulting in misallocation of productive resources. Rebalancing of public support from market support and direct payments toward broader rural development measures, along with modernization of farms and the prioritization of high-value production, can lead to improvements of farm efficiency and sector productivity.

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