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

ArcelorMittal proposes to divest assets in Czech Republic, Macedonia and Romania

International steel and mining company ArcelorMittal said on April 13 it has proposed a divestment package to the European Commission in a bid to obtain approval for its planned acquisition of ... more

Macedonian MPs debate no-confidence motion against government

Macedonian MPs started debating a no-confidence motion filed by the opposition VMRO-DPMNE party against the government on April 11. The opposition party accused the government of increasing crime and ... more

Bulgaria’s Borissov appeals to Western Balkan leaders to preserve peace

Boyko Borissov, prime minister of the current EU Council chair Bulgaria, called on April 10 on the leaders of the Western Balkan countries to preserve peace and ... more