IMF cuts Macedonia 2017 GDP growth forecast to 1.9%

The IMF has also cut its forecast for Macedonia's economic growth in 2018 to 3.2% from 3.4% projected in April, it said in its Regional Economic Outlook report.

In 2019, Macedonia’s economy is expected to expand by 3.4%, according to the IMF projection.

In September, the IMF said the prolonged political uncertainty had resulted in a slowdown of real GDP growth to 2.4% in 2016, the lowest since 2012. "Data for the first half of 2017 point to economic contraction driven by a sharp drop in investment," an IMF staff mission said in the concluding statement of 2017 Article IV consultation with Macedonia .

The Fund also said in its Regional Economic Outlook report it expects Macedonia to swing to average annual inflation of 0.3% in 2017, from 0.2% deflation in 2016. Macedonia's inflation is seen at 2.6% in 2018 and 1.9% in 2019.

The country's current account deficit is projected at 2.3% of GDP in 2017 and is expected to widen to 2.5% in 2018 and 2.8% in 2019.

Unemployment is expected to gradually decrease from 23.4% in 2017 to 23.2% next year and 23.0% in 2019, according to the report.