National Bank forecasts a drop of the Macedonian economy by 3.5% due to the coronavirus crisis

Фото: Мета.мк

The national Bank projected a drop of the gross Domestic Product by 3.5% against the October expectations for growth by 3.8%.

“Regarding the structure of the growth, a decline is expected both with domestic and exporting demands. In 2021, with the normalization of the economic ambiance, the growth of the economy is expected supported by all sources of growth. In such circumstances of a decreased global demands and expressed uncertainty, the growth projections of the Macedonian economy were significantly revised compared to previous October” said the press release.

The National Bank states that the risks of the health crisis still exist and refer to the potential extension of the coronavirus crisis with the protective health measures during the second half of the year. The Macedonian economy will be hit by unfavorable global surroundings but like in all other economies, the measures for fighting the virus will also cause temporary unfavorable effects

“With a potential second wave of coronavirus and the reactivation of preventive measures it would lead to a longstanding disruption in production and demands.” said the press release.

The latest projections forecast that the shock from the Covid-19 will be short term and that the main blow on the economy will be felt during the second quarter and then a normalization is expected. In 2020, a the greatest global recession after the Great Depression is expected.