EBRD sees N. Macedonia's 2019 GDP up 3.2% vs 3.0% forecast in May

The economic expansion is expected to continue at the same pace in 2020, at 3.2%, the EBRD said in its latest Regional Economic Prospects report.

Following a 2.7% increase in 2018, the economic growth rate rose to 3.6% year-on-year in the first half of 2019, the EBRD said, adding that the expansion of the economy was driven by domestic demand, primarily the recovery of investment.

“The resolution of the name issue with Greece has helped to strengthen investor confidence, as confirmed by Fitch’s upgrade in June 2019 of the country’s sovereign rating to BB+,” the EBRD noted.

However, current risks to the projection are more on the downside, mainly related to the delayed start of EU accession talks, which may weaken reform momentum within the country, and the economic slowdown of the European Union.

Economic growth in Southeast Europe is seen decelerating from 3.3% in 2019 to 3.0% in 2020, but still remaining above the forecast average growth of all EBRD regions, of 2.4% and 2.9% in 2019 and 2020, respectively. The Southeast Europe region in the EBRD's report comprises Bulgaria, Cyprus, Greece, Romania, Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia.