he European Commission projects in its Autumn 2021 Economic Forecast, released on Thursday, that North Macedonia’s economy to grow by 4% in 2021 and 3.9% in 2022.

“North Macedonia’s economic recovery is making good progress, as both, domestic and foreign demand are strengthening. The upswing is expected to gradually solidify in 2022 and 2023, based on a further firming of private consumption and foreign demand,” the Commission said in its Autumn 2021 Economic Forecast report. “Real GDP growth is projected to average 3.9% in the period 2021 to 2023.

The recovery in public finances is likely to be more protracted than anticipated earlier. Financing needs for the government’s ambitious new public investment plans, and continued implementation of anti-crisis measures are likely to entail sustained high fiscal deficit levels,” the Commission said in the report.

The positive growth outlook could be challenged if the pace of vaccination slows down or further containment measures are required. A prolonged disruption of supply chains could impact negatively on expectations for exports, in particular. To bolster fiscal sustainability, the government will need to carefully calibrate the gradual withdrawal of fiscal crisis support and the implementation of its ambitious investment agenda. The fiscal scenario assumes swift implementation of improvements in fiscal governance and in public investment management,” the EC said.

Source: MIA