UniCredit expects N. Macedonia’s economy to expand 2.1% in 2024

North Macedonia's economy is expected to expand by 3% in 2025, UniCredit said in its CEE Quarterly report published at the end of last month.

Inflation is expected to hover around 3% in 2024 before slowing to 2.5% in 2025, with the main risks stemming from potential shocks to energy and food prices as well as stickier core inflation, the lender said.

The fiscal deficit is expected to narrow from 4.9% of GDP in 2023 to 3.4% of GDP in 2024, in line with the IMF’s Precautionary and Liquidity Line (PLL) target, thanks to fiscal consolidation measures, while government debt will likely remain at around 53% of GDP.