EBRD raises Macedonia’s 2014 GDP growth forecast to 3%

By bne IntelliNews January 22, 2014

The EBRD has raised its 2014 GDP growth forecast for Macedonia to 3% in the January edition of its Regional Economic Prospects report from 2.7%, which was projected in October 2013. The EBRD has also raised its estimate for the 2013 GDP growth in Macedonia - to 3% from 2.4%.

The Bank said that the Balkan country’s economic performance has improved last year. The EBRD estimates that the output increased on average by 3.4% y/y in Jan-Sep 2013 mainly on the back of continued strong growth of investment as well as some recovery of exports. On the other hand, the Bank comments that consumption remains a drag on growth. It estimates that the GDP in Macedonia grew by 1.9% y/y in Q4 2013.

The EBRD expects the country’s intensive efforts to attract much-needed FDI to help growth prospects. The 3% GDP growth projection for 2014 reflects expected strong growth of exports as well as domestic consumption and investment. The bank projects average inflation of 2.1% in 2014, down from 2.8% in 2013.

The EBRD’s latest 2014 forecast for Macedonia is equal with the one of the World Bank, announced earlier this month. They are slightly below the government’s projection of 3.2% GDP growth this year, used in the preparation of the 2014 budget. All three are higher than the European Commission’s forecast for 2.5% economic growth in Macedonia in 2014, announced in November 2013.

Related Articles

Macedonia’s ex-PM Gruevski fears for his life, asks for additional bodyguards

Macedonian ex-prime minister and opposition leader Nikola Gruevski is seeking at least 20 more bodyguards from the state police, as he says he fears his life is threatened. Gruevski, leader of the ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Macedonia’s opposition VMRO-DPMNE tries to block parliament's work

Macedonia’s opposition VMRO-DPMNE party is trying to block the work of the parliament by forming 10 parliamentary groups instead of the single group that is normal for a political party.  ... more