Macedonia's c-bank cuts GDP growth fcst for 2012, 2013

The central bank also slashed its gross domestic product (GDP) growth forecast for 2013 to 2.6% from 3.0%, NBRM said in a statement on Thursday.

The bank expects the country's economy to grow by 3.4% in 2014.

The downward revision for 2012 and 2013 was prompted by slower global economic growth and consumption decline, it said the statement.

Macedonia's economy contracted by a real 1.4% and 0.9% on the year in the first and the second quarter of 2012, respectively. In 2011 Macedonia's GDP expanded by a real 3.3%.

The central bank also said it expects annual average inflation of 3.4% and 3.5% in 2012 and 2013, respectively. Inflation is seen slowing to 2.6% in 2014.

In August, the central bank projected the annual average inflation at 2.2% for both 2012 and 2013.

Macedonia’s consumer price index rose by an annual 5.3% in October. The average annual inflation in the country was 3.9% in 2011.

($=0.7620 euro)