Skopje, 16 May 2023 (MIA) - The National Bank is projecting an economic growth of 2.1 percent in 2023 and an average inflation between 8-9 percent.

National Bank Governor Anita Angelovska-Bezhoska presented the macroeconomic projections upon adoption of the latest quarterly report.

"According to the latest projections, the macroeconomic situation has not changed significantly when compared to previous years. Growth is expected to stabilize and accelerate with moderate pace in the midterm, whereas inflation will gradually slow down, amid external shocks and tightened financial circumstances. Pressures on the current account deficit are dropping due to the lower prices of primary products and the expectations of international financial institutions for their further reduction in the coming period. Foreign currency reserves are in the safe zone in the short- and mid-term. Risks around projections are still present and mainly linked to the external environment," said Angelovska-Bezhoska.

The projected economic growth for 2023 stands at 2.1 percent, which is lower compared to the base scenario but in the middle of the interval of the two scenarios of the October projection. On 2024 and 2025, GDP projections remain unchanged, standing at 3.6 and 4 percent respectively, in line with the recovery of the global economic activity, especially of North Macedonia's most significant trading partners.

"In regard to the price trends in the national economy, latest projections point to unchanged expectations over inflation, namely ranging between 8-9 percent in 2023. The energy component would significantly contribute to the inflation in 2023, which is owed to the assumptions over energy price reductions, with gradual mitigation of food price pressures also expected. Inflation rate is expected to slow down further in the midterm, dropping under 3 percent, which is close to the historical average. Risks to the inflation projections are linked to the uncertainty in view of the future trends at global energy and food prices. Moreover, wage rises, especially the wage-productivity ratio should be carefully monitored," elaborated Angelovska-Bezhoska.

She added that the central bank is closely monitoring macroeconomic data and risks, undertaking all measures while using all instruments at disposal to maintain the stability of the foreign exchange rate and midterm inflation," concluded the National Bank Governor.