This study looks at how public education spending affects economic growth, focusing on North Macedonia. It uses data from 37 countries between 2012 and 2023, analyzing the impact of education spending, unemployment, and inflation on GDP growth using regression models. The results show a mixed picture: while public education spending has a negative but significant link to GDP growth across Europe, the relationship for North Macedonia is positive but not statistically significant. High unemployment and inflation in North Macedonia seem to limit the impact of education spending. The study emphasizes the importance of efficiently using resources and planning education policies for long-term economic benefits. It points out inefficiencies in public spending and suggests that additional reforms are needed to overcome economic challenges, particularly in developing countries. The findings provide useful insights for policymakers, highlighting the need to align education investments with labor market and industrial strategies for sustainable growth.