ABSTRACT
This study explores how North Macedonia's economy is impacted by net primary income and net current transfers, with an emphasis on how these factors affect the country's balance of payments. Regression analysis is used to examine data from 1996 to 2022, and the results show that net primary income and net current transfers have a significant negative association. The findings indicate that there appears to be a trend for net current transfers to decline in tandem with the rise in North Macedonia's net primary income, which suggests the existence of a compensatory financial mechanism. The study clarifies the dynamics of North Macedonia's foreign economic exchanges and emphasizes the need to manage remittances effectively and diversify sources of revenue. Additionally, this study offers important insights into how developing economies, like North Macedonia, manage their international economic ties and makes policy recommendations meant to strengthen stability and resilience in the economy.