AGP Executive Report

Cross-Border Tourism: A €7.5 million EU-backed project is advancing a new Prespa crossing, which local businesses hope will draw visitors and create commercial opportunities between North Macedonia and Greece. Local Investment: Chinese Ambassador Jiang Xiaoyan and Pehčevo Mayor Aleksandar Kitanski discussed trade, investment and municipal cooperation, including ways to support local economic development. Rail Links: North Macedonia has tendered work on its railway corridor to Bulgaria after securing a €149 million EU grant, but gaps in Bulgarian funding and a cross-border tunnel mean a continuous link is unlikely before the early 2030s. Infrastructure Contracts: A Strabag-led consortium has won a $245 million motorway project in North Macedonia. Trade: The UK added North Macedonia to an expanded export licence covering certain controlled dual-use technologies, though eligibility depends on the specific goods and technology.

Regional Growth: Albania’s construction sector expanded 36% from 2020 to 2024, against 3.8% across the EU, outpacing North Macedonia and other neighbours. Growth was driven mainly by housing and slowed to 4.5% in 2024. Rail Infrastructure: North Macedonia has tendered construction of its railway corridor to Bulgaria, backed by a €149 million EU grant. A continuous cross-border link is unlikely before the early 2030s, pending Bulgarian funding and a tunnel. Trade: The UK added North Macedonia to a general export-licence list covering certain controlled dual-use technologies. Exporters must still check whether specific products qualify. Transport Investment: A Strabag-led consortium won a $245 million contract for North Macedonia’s E65 motorway project. Regional Business: EXPO 2027 in Belgrade is being promoted as a source of new opportunities for Serbia and North Macedonia; organizers plan more than 250 business events and 50,000 business meetings.

Rail Links: North Macedonia has tendered construction of its railway corridor to Bulgaria, backed by a €149 million EU grant. A continuous cross-border connection is unlikely before the early 2030s, with Bulgarian funding and a tunnel still unresolved. Infrastructure: A Strabag-led consortium has won a $245 million contract for the E65 motorway project, adding to the country’s major transport works. Trade: The UK has added North Macedonia to an export licence covering some controlled dual-use technologies, including selected aviation, maritime and advanced technology products. Mining: Central Asia Metals’ planned A$232 million merger with Cygnus Metals brings together a producer with operations in North Macedonia and a copper-gold project in Canada. Regional Business: EXPO 2027 in Belgrade is being promoted as a source of new business opportunities for Serbia and North Macedonia, with forums and business meetings planned.

Rail Infrastructure: North Macedonia has tendered construction of the railway toward Bulgaria, backed by a €149 million EU grant. Unresolved Bulgarian funding and a cross-border tunnel mean a continuous connection is unlikely before the early 2030s. Export Access: The UK has added North Macedonia to an expanded export licence covering certain controlled dual-use technologies, including some aviation, IT and semiconductor-related products. Road Investment: A Strabag-led consortium won a €219 million contract for an 11.5-kilometre section of the E65 motorway, with construction expected to take four years. Mining Deal: Central Asia Metals is acquiring Cygnus Metals in an A$232 million share deal; the enlarged company will include North Macedonian metal operations.

Rail Link: North Macedonia has tendered construction of its railway corridor to Bulgaria after securing a €149 million EU grant. Unresolved funding and the cross-border tunnel mean a continuous connection is unlikely before the early 2030s. Green Innovation: North Macedonia was among the countries represented in the EU’s 2026 New European Bauhaus prizes, which recognize sustainable and inclusive projects; winners receive up to €20,000. Road Investment: A Strabag-led consortium won a €219 million contract for an 11.5-kilometre section of the E65 motorway on Corridor VIII. Construction is expected to take four years. Export Access: The UK added North Macedonia to a general export licence covering specified dual-use technologies, including some aviation, IT, semiconductor and quantum-related products. Mining: Central Asia Metals’ proposed A$232 million acquisition of Cygnus Metals is nearing completion; Central Asia Metals operates in North Macedonia as well as Kazakhstan.

Rail Infrastructure: North Macedonia has tendered construction of the railway corridor to Bulgaria, backed by a €149 million EU grant. Funding gaps on Bulgaria’s side and an unfinished cross-border tunnel mean a through-service is unlikely before the early 2030s. Road Investment: A Strabag-led consortium won a €219 million contract to build an 11.5-kilometre section of the E65 motorway on Corridor VIII; construction is expected to take four years. Export Access: The UK added North Macedonia to a general export licence for specified dual-use goods, including some aviation, maritime and advanced technologies. The licence does not cover every controlled product.

Business Links: Nearly 2,000 Slovenian companies are expected at EXPO 2027 in Belgrade, following a new agreement making Slovenia’s craft and small-business chamber a contact point for participating firms. The event is being promoted as a platform for regional cooperation and new business opportunities. Trade and Technology: The UK has added North Macedonia to a general export licence covering certain dual-use technologies, including specified aviation, maritime and advanced technology products; individual items must still meet the licence conditions. Infrastructure: A Strabag-led consortium won a €219 million contract to build an 11.5-kilometre section of the E65 motorway, part of Corridor VIII. Work is expected to take four years, followed by five years of operation and maintenance. Jobs: From January 2027, Denmark plans to lower the salary threshold for a work-permit route available to North Macedonian citizens from 552,000 to 322,000 kroner a year, subject to employer certification and collective-agreement requirements. Mining: Central Asia Metals’ planned acquisition of Cygnus Metals will bring North Macedonia’s copper, zinc and lead operations into a larger group; Cygnus shares are expected to stop trading as the merger proceeds.

Transport Investment: A Strabag-led consortium won a €219 million contract to build the 11.5-kilometre Bukojčani–Kičevo motorway section on Corridor VIII. Construction is expected to take four years, followed by five years of operation and maintenance. Retail Expansion: BALFIN Group and Flying Tiger Copenhagen are extending their partnership into Romania, Bulgaria and Croatia, building on operations that include North Macedonia; their existing markets are expected to have 20 stores by year-end. Regional Business: A Serbia-led EXPO 2027 networking event in Skopje brought together more than 50 business and tourism representatives to explore partnerships and opportunities linked to the Belgrade event. Export Access: The UK added North Macedonia to a general export licence covering specified dual-use technologies, including some aviation, IT and advanced technology goods; exporters must still check whether individual products qualify. Energy Security: North Macedonia is among nine Energy Community members joining a new oil coordination group to share market and emergency-stock information and coordinate responses to supply risks.

Infrastructure: A Strabag-led consortium won a €219 million contract to build and maintain an 11.5-kilometre section of the E65 motorway between Bukojčani and Kičevo. The four-year build includes a tunnel, bridges and viaducts on Corridor VIII. Regional Business: North Macedonia’s participation in EXPO 2027 Belgrade is creating opportunities for trade and tourism partnerships, with businesses from both countries meeting to explore deals ahead of the event. Retail Expansion: BALFIN Group and Flying Tiger Copenhagen plan 87 stores in Romania, Bulgaria and Croatia over five years, building on a partnership that expects to reach 20 stores in North Macedonia, Albania, Kosovo and Serbia by year-end. Energy Security: North Macedonia is among nine countries joining a new regional oil coordination group to share market and supply data and coordinate responses to potential shortages. Mining: Cygnus Metals expects to delist after its A$232 million all-share takeover by Central Asia Metals, which operates mines in North Macedonia.

Transport Investment: A Strabag-led consortium won a €219 million contract to build and operate the 11.5-kilometre Bukojčani–Kičevo motorway section on Corridor VIII. Construction is expected to take four years, improving links between Skopje, Ohrid and Albania. Mining Deal: Central Asia Metals is set to acquire Cygnus Metals in an A$232 million all-share deal, combining Cygnus’s copper and gold project in Canada with Central Asia’s existing copper, zinc and lead operations, including in North Macedonia. Retail Expansion: BALFIN Group and Flying Tiger Copenhagen plan to grow their partnership to Romania, Bulgaria and Croatia, building on a regional network expected to reach 20 stores by year-end, including in North Macedonia. Energy Security: North Macedonia has joined a new regional oil coordination group to share supply, demand and emergency-stock data and help identify shortages early. Trade and Tourism: A Skopje business event brought together more than 50 Serbian and North Macedonian sector representatives to explore partnerships linked to EXPO 2027 Belgrade.

Labour Mobility: Denmark plans to lower the salary threshold for a new work-permit route from next year, and North Macedonia is among 16 eligible countries. Retail Expansion: BALFIN Group and Flying Tiger Copenhagen plan 87 stores in Romania, Bulgaria and Croatia over five years, building on a partnership that is set to reach 20 stores across North Macedonia and other Balkan markets by year-end. Trade and Tourism: A Skopje business event ahead of EXPO 2027 brought together more than 50 Serbian and North Macedonian tourism and business representatives to explore partnerships. North Macedonia will present its tourism, wine and creative industries at the expo. Energy Security: North Macedonia is joining a new regional oil coordination group to share supply data, track emergency stocks and flag shortages early amid global price pressures. Regional Connectivity: Corridor VIII discussions highlighted the route’s potential to improve transport links and support trade across the Balkans, though turning strategic plans into economic gains will depend on infrastructure and investment.

Work Permits: Denmark plans to cut the salary threshold for a new work-permit route to 322,000 kroner a year from 552,000; North Macedonia is among 16 eligible countries, subject to other conditions. Energy Security: North Macedonia will join a new regional oil coordination group to share supply data, spot potential shortages and coordinate responses to market disruptions. Retail Expansion: BALFIN Group and Flying Tiger Copenhagen plan 87 stores in Romania, Bulgaria and Croatia over five years, building on their existing partnership across North Macedonia and other Balkan markets. Trade and Tourism: A Skopje business event brought together more than 50 Serbian and North Macedonian representatives to explore partnerships tied to EXPO 2027 Belgrade. Transport Links: Corridor VIII discussions highlighted its potential to cut transit costs, attract investment and improve access to European markets. Mining: Central Asia Metals’ Sasa operation is reporting improved output, with brokers maintaining “buy” recommendations.

Energy Security: North Macedonia will join a new Energy Community oil coordination group with eight regional partners to share supply data, monitor emergency stocks and respond to shortages. Separately, Bulgaria says work on the gas interconnector with North Macedonia is due to begin next week. Regional Retail: BALFIN Group and Flying Tiger Copenhagen plan 87 stores in Romania, Bulgaria and Croatia over five years, building on their partnership in North Macedonia and other Balkan markets, where they expect to have 20 stores by year-end. Trade and Tourism: A Skopje business event brought together more than 50 Serbian and North Macedonian tourism and business representatives to explore partnerships tied to EXPO 2027 Belgrade, where North Macedonia plans a national pavilion. Transport Links: Corridor VIII discussions in Sofia framed the route linking the Adriatic and Black seas as an economic and security priority; the Bulgaria–North Macedonia railway remains a key unfinished section.

Retail Expansion: BALFIN Group is extending its Flying Tiger Copenhagen partnership into Romania, Bulgaria and Croatia, building on its North Macedonia operations. The network across Albania, Kosovo, North Macedonia and Serbia is expected to reach 20 stores by year-end. Regional Trade: A Skopje business and tourism gathering ahead of EXPO 2027 brought together more than 50 representatives to explore partnerships between Serbia and North Macedonia. Connectivity: Corridor VIII discussions in Sofia cast the route through North Macedonia as a way to cut costs, attract investment and improve access to markets, though key rail links remain unfinished. Plans also advanced for pipe-laying on the gas interconnector with North Macedonia. Industry & Digital: Central Asia Metals reported improving output at the Sasa mine, while North Macedonia’s broadband subscriptions rose 2% year-on-year to March.

Trade and Industry: China’s growth slowed to 4.3% in Q2 amid weak household demand and a real-estate slump. The analysis warns that softer Chinese demand and tougher EV competition could pressure Central and Eastern Europe and the Western Balkans to upgrade their value chains. Regional Connectivity: Corridor VIII led regional economic discussions, with officials pointing to lower transport costs, investment and stronger trade as potential gains. The Bulgaria–North Macedonia rail link remains unfinished. Türkiye opened a major railway section near Bulgaria, while a separate analysis says Bulgaria’s prospects as a Middle Corridor hub depend on infrastructure and value-added activity. Energy Links: Regional plans include a gas interconnector with North Macedonia, with pipe-laying expected to begin next week, and talks among energy ministers from Bulgaria, Greece, North Macedonia and Serbia. EU Accession: Bulgaria is pressing Skopje for a timeline on its commitments and says renegotiating them is not an option. Local Business: North Macedonia’s broadband subscriptions grew 2% year-on-year, while Sasa mine output improved.

Regional Connectivity: Corridor VIII took centre stage at a Sofia ministerial conference, with officials pitching the route through North Macedonia as a way to cut transport costs, attract investment and strengthen links between the Adriatic and Black seas. The Bulgaria–North Macedonia rail link remains unfinished. Energy Links: Bulgaria said pipe-laying on its gas interconnector with North Macedonia would begin the following week. Separately, the two countries were among four set to discuss regional energy cooperation in Belgrade. Mining: Central Asia Metals’ Sasa operation in North Macedonia reported improved output, prompting brokers to maintain a “buy” rating. Digital Economy: North Macedonia’s broadband subscriber numbers rose 2% in the year to March. Creative Industries: The UK Global Screen Fund’s latest awards will support co-productions with North Macedonia for the first time, opening a new funding route for cross-border film and TV projects.