Skopje, 24 December 2021 (MIA) – This past year is one of gradual recovery from the first hit of the pandemic. Unlike the previous global crisis that caused long-standing and dull suffering, the corona-crisis has brought swift and sharp pain but with faster recovery. A 3.9-percent GDP growth is projected in 2022, reaching the pre-crisis levels but risks are still here, says National Bank Governor Anita Angelovska-Bezhoska. “Developments are mainly within the National Bank expectations. The pace of economic recovery is solid and growth in the first three quarters stands at 4.6 percent, which is close to our projection of 4.2 percent. Unlike the previous global crisis that caused long-standing and dull suffering, the corona-crisis has brought swift and sharp pain but with faster recovery. This is because the current crisis did not result from disruption of the economic fundamentals but spilled over from the crisis in the health system and the uncompromising need to maintain public health,” says Angelovska-Bezhoska in an interview with Capital. The Governor says banks provided significant support to the real sector during the corona-crisis, which is owed to the strong capital and liquidity position of the banking system prior to the start of the pandemic, but also the swift and strong response by the National Bank, which has undertaken series of measures throughout the pandemic to facilitate the financial circumstances in the national economy and increase liquidity and flexibility of banks. The National Bank projects a 3.9-percent GDP growth in 2022, with the economy reaching the pre-crisis levels. “This projection on the economy’s further growth in 2022 is based on several assumptions, the crucial being the recovery of the European economy as our most significant trading partner. Latest projections of the European Central Bank put the 2022 Eurozone growth at 4.2 percent. This, along with the more favorable price conjuncture in the sector of metals, would have a direct positive impact on our exports, and indirectly on other economic segments. In domestic terms, it is expected that the immunization process will continue, having a positive effect on the confidence and conduct of stakeholders within the economy, their consumption and investments. Considering the high degree of capitalization and liquidity of the banking system, we expect further solid credit support to growth,” says Angelovska-Bezhoska. Nevertheless, she adds, these projections include negative risks, such as the uncertain epidemiological situation, rise of energy prices, delays in global supply chains, but also the possible sooner tightening of global financial conditions. On inflation, the Governor says that considering projections by international financial institutions on stabilization of prices of primary products in 2022, inflation is expected to gradually stabilize in North Macedonia. “However, prices of primary products are variable and very uncertain. For this reason, the National Bank is closely monitoring changes in import prices and factors that affect this, but also domestic factors. If deemed necessary, the Bank is prepared to react by using some of the monetary instruments at its disposal,” notes Angelovska-Bezhoska.