The central bank of North Macedonia, NBRSM, said on December 7, it expects the country's gross domestic product (GDP) to shrink 4.9% in 2020, compared to 3.5% fall projected earlier.
However, NBRSM expects the country's economy to bounce back to a 3.9% growth in 2021 and 3.6% growth in 2022, it said in a statement.
The downward revision was made due to the prolongation of the pandemic and its impact on all aspects of the economy, the central bank said.
"The recovery of economic activity in 2021-2022 is expected to be supported by domestic demand, together with the stabilization of the labour market, continuity of credit flows, increasing confidence, as well as further fiscal support for consumption, especially investments," NBRSM noted, adding that the fast recovery of the export segment will also contribute to the economic growth in the following two years, SeeNews website reported.
The bank has also increased its end-2020 inflation forecast to 1.1% from around zero projected in April. For 2021 and 2022, the inflation rate projection stands unchanged at 1.5% and 2%, respectively.
North Macedonia's economy shrank by an estimated 3.3% year-on-year in the third quarter of 2020.