January 24 (SeeNews) - Macedonia's gross domestic product (GDP) growth is seen accelerating to 2.8% in 2018, from 1.7% expected in 2017, amid a stabilisation of the domestic political scene, French credit insurance agency Coface said in a report.
"Private investors, particularly from overseas, made cautious by the long political crisis, are expected to regain confidence," Coface said in its Country and Sector Risks 2018 report published on Tuesday. "Public investment should retain its momentum with the construction of the motorway and rail infrastructure, thanks to financing from EIB and EBRD."
In 2018, household consumption should remain strong, fostered by growth in jobs and immigrant workers’ remittances.
Annual average inflation is expected to increase from 1.2% in 2017, to 1.8% in 2018. Public debt is expected to further increase from 49% of the country's GDP in 2017, to 51% in 2018.
Exports of car components, chemical products, plastics, textiles, construction materials, and food-grade glass will feel the benefits of the European economic upturn, Coface added.
Nevertheless, the country will continue to face several challenges - the strength of the government coalition, increased ethnic polarisation of the society, and the process of the country’s accession to the European Union and NATO, according to Coface.