World Bank2020-11-092020-11-092020-06https://hdl.handle.net/10986/34755North Macedonia has made considerable progress in recent decades, moving from lower-middle to upper-middle income status, and from a planned to a functional market economy. Despite these reforms, the domestic economy still lacks the needed dynamism to move into higher-income status, as evidenced by a declining and low productivity challenge. Compounding this challenge, the economy also faces a low employment and skills challenge. To address its productivity challenge North Macedonia will need to continue to attract FDI and engage in an ambitious strategic regulatory and firm-level reform agenda. North Macedonia will need, as well, to continue supporting the development of a skilled and well-trained labor force that can match the upcoming demands of the private sector.CC BY 3.0 IGOECONOMIC GROWTHJOB CREATIONEMPLOYMENTLABOR MARKETPRIVATE SECTOR DEVELOPMENTBUSINESS ENVIRONMENTREGULATORY QUALITYCOMPETITION POLICYACCESS TO FINANCEFOREIGN DIRECT INVESTMENTSTATE AID POLICYYOUTH LABORLABOR SKILLS DEVELOPMENTLABOR POLICYMICROFINANCESMALL AND MEDIUM SIZE ENTERPRISEReportWorld Bank10.1596/34755