The economies in the region that are covered by the European Bank for Reconstruction and Development will drop by average 3.5% during this year with a growth by 4.8% in 2021, and the forecasts are a subjects of “unprecedented uncertainty”. These are the forecasts published in today’s EBRD report “Regional Economic Prospects” which is published twice a year.
“The projections about the drop this year are based on the pandemic’s influence on the economy” says the report.
Regarding Macedonia, a drop in the GDP of 3.5% in 2020 is projected and an economic growth of 5.5% in the next year. It is concluded that the last year’s growth was 3.6% which is 2.7% more compared to 2018 due to increased domestic demand and supply.
EBRD forecasts that the drop of GDP in Macedonia, apart from Serbia will be the smallest, compared to other countries in the Western Balkans region and many countries in Europe. EBRD’s Chief Economist Beata Javorchik said that as the world is emerging from the crisis it is key to center on futur cooperation and greater economic flexibility.
“The crisis was a major hit and coming out of it will pose an equal challenge. But this is no time to engage in economic nationalism and protectionism, but a time shape a better future through international commitment for free trade, decrease of climate changes and economic cooperation. Western Balkans countries such as Bosnia and hercegovina, Macedonia, and Serbia will be hit due to the disrupted global supply chains, because of their strong production basis. Albania and Montenegro will be hit due to their dependence on tourism while Kosovo and to a certain degree other economies in the Western Balkans, the lower remittances will reduce the domestic demand” said Javorchik.
