EBRD cuts N. Macedonia's 2024 growth f'cast to 2.5%

North Macedonia's economic growth is expected to accelerate in 2024 compared to the 1% growth rate recorded in 2023, yet it remains constrained by limited fiscal space due to the high fiscal deficit and public debt, the EBRD said in its May 2024 Regional Economic Prospects report.

Gross Domestic Product (GDP) growth is expected to further speed up to 3.5% in 2025, as high remittance inflows and declining inflation continue to boost private consumption and external demand gradually recovers.

North Macedonia's GDP growth in 2023 was lower than expected mainly because of weak demand from the main export markets in the eurozone, the EBRD explained. The country's statistical office has not yet published 2023 economic growth data.

The EBRD expects the economic growth of the Western Balkans region to pick up to 3.3% in 2024 from the estimated rate of 2.5% in 2023. Economic growth for the region in 2025 is projected at 3.7%.