Here is the converted article text in Markdown format:

Macedonia’s Economic Growth Depends on Structural Reforms and Public Investment

A new report from the International Monetary Fund (IMF) has emphasized the need for Macedonia to implement structural reforms and increase public investment in human capital and infrastructure to boost economic growth and enhance its prospects of joining the European Union.

Recommendations for Fiscal Challenges

The IMF mission, led by Mr. [Name], recommended several specific measures to address the country’s fiscal challenges:

Reduce the labor tax wedge at low-income levels
Raise additional revenues through more efficient collection of Value-Added Tax (VAT) and higher property and fuel taxation
Reduce current spending by cutting subsidies and reforming the pension system

Strengthening Public Financial Management

The report also stressed the importance of strengthening public financial management and increasing transparency. The authorities should:

Develop a prioritized plan to improve public financial management
Verify claims of payment arrears
Put in place a system that prevents accumulation of new arrears

Structural Reforms for Growth and EU Accession

In addition, the IMF team emphasized the need for structural reforms to strengthen growth and enhance EU accession prospects. This includes:

Decisively tackling weaknesses in the judicial system and overall governance frameworks
Increasing labor participation and upgrading skills
Reducing high youth unemployment rates through investment in vocational training and higher education

Addressing Income Convergence and Integration with the European Union

The report noted that Macedonia has experienced one of the slowest income convergence with advanced Europe in the last two decades compared to other countries in emerging Europe. Limited progress in implementing reforms, especially in the areas of governance and competition policy, has held back foreign direct investment (FDI) inflows and hindered deeper integration with the European Union.

Recommendations for Increasing Labor Participation

The IMF team also highlighted the need for more emphasis on increasing labor participation and upgrading skills, particularly among women and youth. The mission recommended:

Increasing availability of affordable childcare
Allowing greater flexibility in family leave policies to improve female labor force participation
More investment in vocational training and higher education to reduce high youth unemployment rates

Acknowledgment and Contact Information

The IMF team expressed its appreciation for the authorities’ cooperation, hospitality, and candid discussions during their visit.

Contact: IMF Communications Department Phone: +1 202 623-7100 Email: MEDIA@IMF.org