Skopje, 18 November 2021

Price and financial stability are a prerequisite for economic development and provide space to be used by other policymakers for achieving structural reforms to support stable and long-term economic growth. The successful operation of the National Bank is crucial for the Macedonian economy. This has been proven especially since the beginning of the corona crisis, when it was confirmed that the capacity that the National Bank has built enabled it to act in a timely and efficient manner within its mandate, to support the economy in dealing with the effects of the crisis. The European Bank for Reconstruction and Development (EBRD) through its projects additionally provides support in creating favorable conditions for economic recovery.

This was emphasized at the working meeting between the National Bank Governor, Anita Angelovska Bezhoska and Andi Aranitasi, representative of the European Bank for Reconstruction and Development (EBRD) in the Republic of North Macedonia. The meeting, among other things, was focused on the National Bank's observations on the situation in the economy, in comparison with the forecasts. In this vein, it was reaffirmed that the EBRD will continue to support the Macedonian economy, through several forms of credit support for the corporate sector, which strongly rely on the cooperation and communication with the National Bank whose forecasts are crucial for the perceptions of the international community, including investors.

At the meeting, Governor Angelovska Bezhoska referred in more detail to the latest macroeconomic forecasts and expectations for the economy in the upcoming period. The latest expectations for economic growth remain unchanged compared to the April forecasts. According to the built-in assumptions for the external environment and domestic factors for this year and next, economic activity is expected to grow at an identical growth rate of 3.9% and gradually reach 4%, in the medium term. The credit activity of the banking system remains one of the important factors for supporting economic growth. Over the forecast horizon, solid credit growth is expected, which this year will be 7.1% and will gradually accelerate to around 8% in the medium term. There are similar expectations for the deposit growth as the main source of financing for banks. As Mr. Aranitasi pointed out, EBRD forecasts are similar and expect the Macedonian economy to grow by 4% this year and next.

The EBRD has been present for a long time in the Republic of North Macedonia with its activities aimed to support the strengthening of competitiveness of the Macedonian economy, as well as strengthening regional integration and approximation to EU standards. Additionally, the EBRD through its projects and activities strives to improve the capital market in the domestic economy and its regional connection, for efficient allocation of funds. The EBRD also undertakes activities or funds projects that support the transition of the Macedonian economy to a model that provides positive effects for the environment. In this regard, some projects are aimed at increasing efficiency in the use of resources and use of sustainable energy sources.