Skopje, 7 October 2021

In the first half of this year, GDP increased at the level which is almost in line with the National Bank forecasts, prompted also by the credit support from the banking sector. Further gradual economic recovery is expected, which will largely depend on the recovery of our most important trading partners, conditioned mainly by the risks associated with the epidemiological situation. This was discussed at the working meeting between the National Bank Governor Anita Angelovska Bezhoska and the Bulgarian Ambassador Angel Angelov, and the Bulgarian Consul General Dimitar Ivanov. The meeting focused on the general economic situation, as well as the measures taken to stimulate economic activity.

Governor Angelovska Bezhoska emphasized that the situation in the Macedonian economy, as a highly open economy, largely depends on the developments in the euro area and Germany, which is our major trading partner. The ECB's forecasts for their further recovery raise expectations for a positive impact on our economy. The Governor also referred to the state of the Macedonian economy this year, pointing out that the relaxed monetary policy contributes to economic recovery. In the first half of this year, it registered a growth of 5.2%, which almost completely matches the National Bank forecasts (5.4%). According to the latest macroeconomic forecasts, economic rebound is expected to pre-crisis levels in early 2022.

Regarding the monetary policy in times of pandemic, Governor Angelovska Bezhoska pointed out that the comfortable level of foreign reserves is of particular importance for its easing, same as the access to euro liquidity provided for the first time through the ECB’s repo line. Although the National Bank did not use any of the funds, the readiness of the European Central Bank significantly contributed to maintaining the stability of the domestic currency amid volatile market movements during the health crisis.

Governor Angelovska Bezhoska pointed out that the National Bank measures reduced loan prices and ensured constant credit growth during the pandemic. The banking sector has so far handled the pandemic risks well, as seen by the growth of deposits and solid credit growth. Moreover, the good performances of the banks and the prudent regulatory requirements in the past period enable adequate capitalization of the banking system and its readiness to deal with the challenges in the period ahead. The ongoing gradual economic recovery positively contributes to maintaining macroeconomic and financial stability and mitigates systemic risks. However, the uncertain nature of the corona crisis imposes the need for constant preparedness and vigilant monitoring of the situation in order to take appropriate measures to fight off challenges.