8 May 2022 

The Macedonian economy will not be bypassed and will certainly feel the consequences of the Russian-Ukrainian crisis. "We expect a slowdown in economic growth, as well as an acceleration of inflation," said Governor Anita Angelovska Bezhoska for HTV, who is attending the Tenth Regional Meeting of Central Bank Governors in Rovinj, Croatia. 

The topics of this year's meeting are economic recovery in the context of the conflict in Ukraine and the sanctions against Russia, uncertainty and the financial sector, inflation and monetary policy.

The Governor stressed that, similar to other countries in the region, the direct trade and financial ties of the Republic of North Macedonia with Russia and Ukraine are weak, and that the conflict will affect the Macedonian economy through other channels. Trade with these two countries is less than 2% of total trade. The share of foreign direct investment from Russia and Ukraine is also very low, or 0.5% of total foreign direct investment in 2020.

However, the global, and primarily the European economy on the countries in the region will feel indirect impact. It will be felt through four main channels: trade, the price of primary products, the tightening of international financial markets and consumer confidence, the governor said. The IMF forecasts that global trade will grow but more slowly i.e. by 5%, primary commodity prices from the beginning of the year still have an upward trend, interest rates in international financial markets have risen, and due to uncertainty may slow down investment and consumption. However, international financial institutions currently expect that economies will grow, but at a slower pace, and inflation in the second half of the year will gradually stabilize.

The Governor stressed that monetary and fiscal policy are on the move again, monetary policy by maintaining stability, while fiscal policy through support measures to mitigate the effects on economic activity in the short term. In the medium and long term, the structural reform agenda needs to be implemented, which is the only way to achieve long-term effects.