World Bank maintains N. Macedonia's 2024 GDP growth f'cast at 2.5%

North Macedonia's GDP growth, concluding at 1% in 2023, is expected to accelerate in the medium term to reach 2.5% in 2024 and 2.9% in 2025, contingent on robust public investments and a gradual recovery of consumption and exports, the World Bank said in its latest Economic Update for Europe and Central Asia report.

Inflation is expected to stay above the long-term average at 3% in 2024 before decelerating to 2%, with projections based on geopolitical tensions subsiding, continued focus on the EU accession agenda after the May 2024 general elections, and a slow decline in poverty rates, the global lender said.

Against several downside risks over the medium term, further progress with EU accession negotiations can provide an impetus for growth and accelerate income convergence with EU peers, the World Bank noted.

The Western Balkans' economies are seen expanding by 3.2% in 2024, following an estimated 2.6% regional economic growth in 2023.