SKOPJE (N. Macedonia), May 17 (SeeNews) - North Macedonia's Gross Domestic Product (GDP) is expected to rise by 3% in 2022, the European Commission (EC) said, lowering its November forecast for 3.9% economic expansion.
North Macedonia's economic growth is further expected to slightly accelerate to 3.1% in 2023, the Commission said in its Spring 2022 Economic Forecast report on Monday.
"North Macedonia’s economic recovery is expected to lose some momentum in 2022, reflecting a deteriorating external environment, but also weaker domestic demand due to increasing domestic inflationary pressures, and more cautious investment in view of increased international uncertainty and possible supply chain interruptions," the Commission said.
Private consumption is projected to increase by 2.9% in 2022 after rising by 5% last year. Public consumption should rise by 1.4% in 2022 after growing by 4.1% in 2021, the report reads.
Inflation is expected to reach 6.7% in 2022, speeding up from 3.2% in 2021, before it slows down to 3.9% in 2023.
General government deficit is expected to expand to 4.1% of GDP in 2022 from 3.5% in 2021, the Commission said.
North Macedonia's economic output expanded by 4% in 2021.
The European Council granted the status of EU candidate country to North Macedonia in 2005.