Index Commentary

Macedonia decreases four places in the Index. The drop in energy security is primarily driven by a decrease in the wholesale margin on gasoline, which is Macedonia’s weakest indicator in this dimension; however this is partly offset by a reduction in energy consumption. Small improvements in the quality and affordability of electricity access as well as a small decrease in the gasoline prices improve social equity. Environmental performance drops due to a decrease in the quality of air and water, higher energy intensity and increased emissions per capita; which is partly offset by lower CO2 emissions from electricity and heat generation. Contextual performance overall remains stable. Political strength slightly decreases due to a small drop in political stability and effectiveness of government. Economic performance remains the weakest dimension due to very high cost of living as proportion of household consumption expenditure. Minor improvements are driven by improved macroeconomic stability and slightly better credit availability.