North Macedonia’s central bank forecasts economic growth rates of 2.3% in 2024 and 3.3% in 2025, it said on November 8.

The figures reflect a slight downward revision from spring projections, which had anticipated growth rates of 2.6% and 3.6% for the respective years.

Credit activity is expected to play a key role in supporting growth, with the central bank projecting an average increase in credit activity exceeding 7%, bolstered by an expanding deposit base and a stable banking system.

In terms of inflation, North Macedonia is on track to see a significant decline. Following a high of 9.4% last year, inflation is projected to drop to 3.5% this year, with a continued downward trend over the coming years.

The central bank expects inflation to stabilise further, averaging 2.5% in 2025, eventually returning to the historical average of 2%.

Governor Anita Angelovska-Bezoska presented these projections to the diplomatic corps and representatives of international institutions, noting that the national bank has cautiously begun normalising monetary policy.

This adjustment has been facilitated by both declining inflation and favourable conditions in the foreign exchange market.

However, the central bank remains vigilant regarding inflation risks, particularly those related to global commodity prices and domestic policies affecting aggregate demand.

Angelovska-Bezoska emphasised that ongoing caution will be necessary to address potential volatility in these areas.