Skopje, 7 November 2024 (MIA) - The National Bank has projected a slowdown of inflation and weaker economic growth for 2024 and 2025, compared to the April projections. The autumn macroeconomic projections project put the GDP growth at 2.3 percent in 2024 and 3.3 percent in 2025. In the medium term, the growth projections remain unchanged, with acceleration expected in 2026-2027, in line with the expectations for a more favorable external environment and increased investment activities related to the longer-term infrastructure cycle.

National Bank Governor Anita Angelovska-Bezhoska said Thursday that the latest estimates reaffirm the April projection on the 3.5-percent average inflation rate in 2024, whereas the rate is expected to stand at 2.5 percent in 2025, which is a slight upward revision compared to the April assessment. The inflation level is expected to stabilize at about two percent in 2026-2027, with the expected exhaustion of the effects of outside price shocks. Prices of primary products continue to be considered as risks, arising from the unstable geopolitical context and climate factors, as well as domestic policies that impact the aggregated demand in the national economy.

Angelovska-Bezhoska expects the banking system to continue to provide solid credit support, with growth amounting to 7.5 percent by the year-end.

"Growth is also expected in the medium term at an average rate of 7.2 percent in period 2025-2027, with deposits as the main source of financing. Deposits are expected to rise by 7.9 percent in 2024, followed by an average of 7.7 percent in 2025-2027," she added.

The Governor noted that as the global economy and external demand recover, growth of the Macedonian economy is expected to gradually accelerate.

"The National Bank will monitor existing macroeconomic data and risks on a daily basis, and as before, undertake all required measures using all instruments at disposal, for the purpose of maintaining the exchange rate and price stability," concluded Angelovska-Bezhoska.

Photo: MIA