Following discussions between the IMF’s delegation and Macedonian policymakers, a revised forecast reveals a substantially elevated inflation rate for this year. The Government now anticipates rates potentially climbing to three percent. This adjustment reflects the impact of the recent crisis ignited by the US and Israel’s actions against Iran.
The anticipated disruption to energy markets is expected to negatively influence economic expansion and exacerbate inflationary pressures. The IMF’s projections highlight a downward trend. Real GDP growth is now expected to decline to 3.1% in 2026, with stabilization around the potential growth rate of 3% anticipated in the medium term.
Furthermore, rising global oil prices are forecast to contribute to inflation, reaching approximately 4.5% in 2026. This situation raises significant concerns regarding energy affordability. The fmn’s assessment underscores the vulnerability of the Macedonian economy to external shocks.
The IMF’s report emphasizes the need for continued monitoring and proactive policy responses to mitigate these inflationary risks.
Topics: #inflation #expected #fmn
