Skopje, 6 December 2021

The National Bank forecasts, which are very close to the forecasts of the international financial institutions, indicate a further gradual recovery of the Macedonian economy - growth of 3.9% is expected for the next year, which would reach and would exceed the pre-crisis level of economic growth. However, there are risks associated primarily with the further development of the pandemic with the occurrence of the new types, which requires careful monitoring of the situation in the economy and timely response by policy makers, if necessary. Also in the period of dealing with the pandemic, the implementation of structural reforms is extremely important, because they are a prerequisite for sustainable and higher economic growth.

These are some of the conclusions that were stated at the regular working meeting between the President of the Republic of North Macedonia, Stevo Pendarovski and the Governor of the National Bank, Anita Angelovska Bezhoska. Subject matter of the meeting, which was also attended by the Vice Governors of the National Bank and representatives of the expert team of the President, were the economic performances this year and the expectations and assessments of the National Bank for the coming period, in accordance with the latest forecasts.

The Governor also referred to the expected structure of the economic growth, and she pointed out that it is still estimated that it will result from the domestic demand.

“Also in this period of dealing with the pandemic, we should not forget about the structural reforms, which are key to the economy. The further implementation of structural reforms is especially important to increase the long-term potential of the Macedonian economy, to reduce vulnerability and consequently, to increase the room of policies to better deal with future shocks. In circumstances when the room for response to macroeconomic policies is reduced, the focus needs to be placed on target policies and measures that will support the post-crisis transformation of the economy.” - said among other things, Angelovska Bezhoska.

At the meeting it was emphasized that it is very important that the National Bank constantly carefully monitors the developments and the risks, and as an independent and professional institution, it is constantly prepared if necessary, to respond in an appropriate manner within its competences, for the purpose of reaching macroeconomic stability and supporting the Macedonian economy, thus successfully achieving its legal goals and carrying out its tasks.

In the discussion, it was separately underlined that in the entire course of the crisis, the maintained stability of the banking system is of extremely great importance, which provided support to the economy, and it is expected to support the economic growth also in the period ahead, taking into account its resilience to shocks, shown on the latest stress-tests. Specifically, the credit support to the economy remains solid, with growth which would equal around 7% for this year and would gradually accelerate reaching about 8% in the medium run. There are similar expectations for the deposits movement.

At the same time, the meeting also raised questions of the activities that the National Bank plans for the coming period, for protection of consumers - financial services users and for financial education and for the expected effects of the adoption of a new Law on Payment Services and Payment Systems.