October 5 (SeeNews) - North Macedonia's economy is expected to expand by 2.1% in 2022, the World Bank said, downgrading its June forecast by 0.6 percentage points.
In 2023, North Macedonia's economic growth is expected to speed up to 2.7%, the World Bank said in its fall Europe and Central Asia Economic Update report published on Tuesday.
"Output growth over the medium term is expected to moderate and downside risks remain elevated. The 2022 growth forecast is downgraded further to 2.1 percent as the energy and Ukraine crisis continue to take a toll on the domestic economy. Disruptions related to the war in Ukraine, overstretched supply chains, mounting inflationary and wage pressures and the intensifying energy supply crisis continue to weigh on the outlook," the World Bank said.
North Macedonia's economy is estimated to have expanded by 4% in 2021.
For the Western Balkans region, the World Bank is projecting economic growth of 3.4% in 2022, down from 7.7% expansion in 2021.
"Growth is projected to remain at an average of 2.9 percent over the forecast horizon, as EU accession reforms and investment mitigate the negative impacts imposed by higher energy and food prices, disruptions to trade and investment flows, and spillovers from the slowdown in euro area activity," the World Bank noted referring to the Western Balkans region.