The International Monetary Fund (IMF) has revised its economic growth forecast for North Macedonia, lowering the GDP growth projection for 2025 to 3.2%. This adjustment reflects ongoing economic challenges and is part of the IMF’s latest World Economic Outlook report.
Key Takeaways
- IMF reduces North Macedonia’s GDP growth forecast for 2025 from 3.3% to 3.2%.
- Economic growth is expected to stagnate at 3.2% in 2026 and 2027.
- Average consumer price inflation is projected at 3.4% in 2025.
- Current account gap expected to be 2.16% in 2025.
Overview of the Economic Forecast
In its recent report, the IMF highlighted that North Macedonia’s economy is facing several headwinds, leading to a slight downgrade in growth expectations. The previous forecast of 3.3% growth for 2025 has been adjusted down to 3.2%. This change is indicative of the broader economic environment affecting the region.
The IMF’s projections suggest that North Macedonia’s economic growth will remain stagnant at 3.2% for the following two years, 2026 and 2027. This stagnation raises concerns about the country’s ability to sustain economic momentum in the coming years.
Inflation and Current Account Projections
The IMF also provided insights into inflation and the current account balance:
- Inflation Rates: Average consumer price inflation is expected to be 3.4% in 2025, slightly lower than the previous year’s rate of 3.5%. For 2026, inflation is projected to decrease further to 2.2%.
- Current Account Gap: The current account deficit is projected to be 2.16% of GDP in 2025 and 2.14% in 2026, indicating ongoing challenges in balancing trade and investment flows.
Regional Economic Context
The IMF’s report places North Macedonia’s economic outlook within the broader context of the Emerging and Developing Europe region, which is expected to grow by 2.1% in 2025. This growth follows a stronger performance in 2024, where the region is anticipated to expand by 3.4%.
North Macedonia’s economy has shown some resilience, expanding by 2.8% in 2024, following a growth rate of 2.1% in 2023. However, the revised forecasts suggest that the country may struggle to maintain this growth trajectory in the face of external economic pressures.
Conclusion
The IMF’s adjustment of North Macedonia’s economic growth forecast underscores the challenges the country faces in achieving sustainable economic development. Policymakers will need to address these issues proactively to foster a more robust economic environment and improve the overall outlook for the coming years.
