Western Macedonia’s economy was 18% smaller in 2024 than it had been before the pandemic, placing the northern Greek region among the European Union’s weakest performers over the five-year period.
Figures highlighted by Eurostat on October 22 show that only Bulgaria’s Yugoiztochen region had a larger decline, at 20.5%. The comparison measures inflation-adjusted economic output between 2019 and 2024.
Across the EU, output rose 5.6% over those five years. Of the 244 regions covered, 197 expanded, 46 contracted and one remained unchanged. Western Macedonia was one of just five regions where the decline reached double digits.
A different picture for household income in Western Macedonia
The GDP result measures production within the region. It does not mean that residents’ incomes fell by the same percentage.
In fact, Eurostat’s regional yearbook reports that Western Macedonia’s net disposable income per resident rose from €10,700 in 2019 to €13,200 in 2023, an increase of 23.4% in euro terms. Over that shorter period, GDP per resident increased from €15,200 to €15,500.
Those income figures are not adjusted for inflation. They describe money available for spending and saving after taxes and social contributions, including transfers and benefits.
The challenge of replacing lignite
Western Macedonia is also a focus of European support for communities moving away from lignite mining and coal-fired power generation.
In 2023, the European Climate, Infrastructure and Environment Executive Agency announced financing for €80.7 million in regional investments. The package combined a €14.5 million EU grant with a €58 million European Investment Bank loan.
The plans included improvements to public buildings, health facilities, roads and cultural infrastructure in communities including Kozani, Kastoria and Florina. Their stated purpose was to help diversify the economy and reduce inequalities as the region moved beyond lignite.
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