Skopje, 15 May 2024 (MIA) - National Bank Governor Anita Angelovska-Bezhoska presented Wednesday the National Bank's latest macroeconomic projections before the diplomatic corps and representative of international institutions. The annual event is held after each new macroeconomic cycle of the National Bank, attended by representatives of the International Monetary Fund (IMF), World Bank, Delegation of the European Union-Skopje, United Nations, United Nations Development Programme (UNDP), and diplomatic representatives from Bulgaria, China, Kosovo, the United States, Slovakia, Hungary, Netherlands, Switzerland, Spain, and Sweden, the National Bank said in a press release.

The Governor noted that it is expected that inflation, which decreased to a single-digit level last year, will continue to slow down in accordance with the first quarter of this year when the average annual rate was 3.4 percent, lower than the October forecasts.

In 2024 the average inflation is predicted to slow down to 3.5 percent, from 9.4 percent the previous year, reflecting the decline in global oil and food prices, the slowdown in foreign effective inflation, and tight financial conditions.

In the medium term, inflation is expected to further slowdown and return to the historical average of around 2 percent.

"Inflation risks still exist and are mainly related to commodity prices, changes in regulated prices, and demand-side policies. The National Bank maintains its stance on prudent monetary policies, and future changes will depend on trends in the foreign exchange market, movement of inflation and inflation expectations, including the European Central Bank's stance," the press release reads.

Referring to other macroeconomic indicators, Angelovska-Bezhoska said that with the growth of the global economy, especially our trade partners, in 2024 the Macedonian economy is expected to grow at a rate of 2.6 percent, and 3.6 percent in 2025, and moderately accelerate in the medium term. In addition to forecast of solid net inflows in the financial account, which would exceed the current account deficit, further growth of foreign reserves is also expected, as a guarantee for the exchange rate stability.

"The global environment remains uncertain and unpredictable, and in turn creating risks to economic growth, inflation and the external position, highlighting the need for prudent domestic macroeconomic and structural policies. The National Bank carefully, and on a daily basis, will continue to monitor macroeconomic data and risks, take all necessary measures, using all available instruments, to maintain stability of the foreign reserves and stabilizing inflation in the medium term," the National Bank said. ssh/sk/

Photo: National Bank