Newsroom / News / Media / Info Magazine LGP NEWS 01/2020 / Economic impact of Covid-19 in North Macedonia

Economic impact of Covid-19 in North Macedonia

Economic impact of Covid-19 in North Macedonia

The dramatic spread of COVID-19 has disrupted lives, livelihoods, communities and businesses worldwide. On 18 March 2020 North Macedonia declared а state of emergency and postponed all preparations for parliamentary elections in April. On 17 April 2020 the President of North Macedonia declared a new 30-days state of emergency. 

As the Government made significant interventions in response to the coronavirus, companies in some industries were ordered to be closed or to reorganize their work which directly affected the production and operations of the companies. All shops in shopping malls were closed, except for supermarkets, food stores and pharmacies. People should keep a distance of at least 1 meter from other persons. Education facilities, libraries, student dormitories, cinemas, theatres, museums, coffee shops, bars, clubs, casinos, sports facilities, gyms and betting agencies were closed. In addition, all public and private gatherings and events, in open and closed spaces, as well as all cultural events and manifestations, are prohibited.

Customer-related business can continue to work through alternate sales (via online orders, telephone orders, etc.) and should organize delivery. All catering establishments that prepare and sell food can operate without visiting customers, make alternate sales and deliver or enable pick-ups of the orders outside the catering facility. All these measures shall remain in force until the end of the state of emergency.

Economic measures in North Macedonia

So far, the Government of North Macedonia adopted the following economic measures to ensure liquidity in businesses and prevent layoffs:

  • State subsidies for employers: Financial support of payment of salaries for April and May or subsidizing 50% of contributions to salaries per employee in private companies affected by the crisis and subsidizing 50% of contributions for employees working in the tourism, transport and catering sector
  • Moratorium on loan and leasing repayments: Postponing loans with banks and decrease in the instalment and reprograming of loans within financial companies and leasing companies
  • Financial support measures. The Development Bank of North Macedonia issued non-interest loans in the amount of 13.7 mil EUR for micro, small and medium enterprises and 50 mil EUR loans placed throughout the commercial banks

Future developments

The number of new cases in North Macedonia is in decline and the Government currently is debating on the right approach to restart the economy. When different sectors go back to work, the state must institute health and behavioral protocols to lower the potential for further transmission (e.g. remote work, hygiene- and health-oriented guidelines, reporting of relevant information to the health authorities etc.). Businesses will need protocols to maintain physical distancing and prevent a resurgence of new cases. 

This is certainly the year that will challenge every assumption we held in the past. The decisions leaders make today will not only influence how quickly organizations and countries emerge from the current crisis but also define how they adapt to the next normal.

Our services aim to assist firms in building strategies to address, control and manage the impact of the current crisis and through sharing knowledge play our part in helping to protect and preserve firms and quality work that companies and their employees provide to their clients.


Arlind Zeqiri, M.A., Managing Partner at LANSKY, GANZGER + partner North Mazedonia

My documents

Add page

There are currently no documents in your basket.