Macedonian citizens earn significantly less than European Union citizens, but lower prices for goods and services mean that their money can be “worth” more than the salary alone suggests, according to the latest Eurostat analysis. However, the fact that the denar is worth more does not make Macedonia financially powerful enough to catch up with European living standards.
When comparing economies, salary levels do not tell the whole story. Equally important is how many products and services can be purchased with that money. That is why Eurostat uses Purchasing Power Parity (PPP), an indicator that eliminates price differences between countries and allows for a more realistic comparison of living standards.
According to the latest data, Macedonia remains among the European countries with a lower price level. This means that for the same amount of money, citizens can buy more products and services than in many European Union countries, where the cost of living is significantly higher. However, lower prices cannot fully compensate for the difference in incomes.
Eurostat states that gross domestic product per capita, calculated according to purchasing power parity, is one of the most relevant indicators for comparing living standards. For Macedonia, this indicator in 2025 is 43, if the European Union average is set at 100. In other words, economic output per capita, adjusted for price differences, reaches about 43 percent of the EU average.
Economists explain that higher purchasing power does not automatically mean a higher standard of living. If wages are low and prices are moderate, citizens may be able to buy more basic products than they could in more expensive countries, but they will still have less money to save, invest, travel or have better quality services.
In the European Union, price differences are large. In 2025, the highest prices of goods and services for households were recorded in Denmark, Ireland and Luxembourg, while the lowest were in Bulgaria, Romania and Poland. These differences are one of the reasons why Eurostat uses purchasing power parity instead of directly comparing wages or GDP in euros.
The data show that Macedonia has an advantage when it comes to lower living costs, but at the same time remains far behind the European average in terms of economic power and income. This means that, although money here can buy more than it would in many Western European countries, its total amount is still not enough for a significantly higher standard of living.
Therefore, according to economic analysts, the real improvement in living standards will not come only through low prices, but above all through higher wages, greater productivity and stronger economic growth. Prime Minister Hristijan Mickoski believes that the opposition sounds almost dissapointd that purchasing power of Macedonian citizens is higher than that of several EU countries and all countries in the region.
There were certain messages about purchasing power from the opposition, but also from some media outlets that share the opposition’s opinion. A shallow campaign was waged that was later refuted and they will once again regret and be disappointed because Macedonia is not the weakest, but is much better than several EU countries and all countries in the region, Mickoski emphasized today
As the Prime Minister said, if the figures from three-four years ago are compared, significant progress can be noted. However, the fight to improve the living standards and economic well-being of citizens continues.
Is that enough? Of course not. We will continue to work to make things even better. We are motivated like never before. They will continue to create hysteria based on constructions and lies, and we will roll up our sleeves as we have been doing for the past 25 months and continue to work dedicatedly for the country and the citizens, the Prime Minister emphasized.
