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Macedonia's c-bank lowers GDP projections for 2017, 2018 on political crisis

Macedonia's c-bank lowers GDP projections for 2017, 2018 on political crisis The National Bank of the Republic of Macedonia Licence: Public Domain

SKOPJE (Macedonia), May 25 (SeeNews) - Macedonia's central bank said on Thursday it has lowered its GDP growth forecast to 2.5% in 2017 and 3.2% in 2018, from previously projected 3.5% and 3.7%, respectively, on domestic factors of non-economic nature. 

The country has been without elected government since 2015, when the coalition cabinet led by nationalist VMRO-DPMNE party resigned amid a wiretapping scandal. Currently, Social Democratic party leader Zoran Zaev is in talks for forming a coalition government with ethnic Albanian parties which entered parliament after EU-brokered early election held in December.

The main growth drivers will continue to be the same as in 2016 - exports and private consumption,  the bank said in its Revision of the Macroeconomic Projections report released on Thursday.

The central bank expects  significant investments growth in 2018 in the context of more stable business climate.

In 2017 the average annual consumer price inflation is projected at 1.3%, while for 2018 the bank foresees inflation of 2%.

"The risks to the projected inflation path are mainly related to the uncertainty of import prices," the bank said.

Macedonia's economy expanded by  2.4% in 2016. The country posted an annual consumer price deflation of 0.2% in 2016. 

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