Skopje, 9 November 2021 (MIA) – According to the latest macroeconomic projections of North Macedonia’s National Bank, the Macedonian economy will recover with a growth of 3.9% in 2021 and also in 2022. Moderate acceleration is expected in the medium-term. Inflation is projected at 3.1% after a moderate upward correction has been made compared to the April projection. Inflation is expected at 2.4% next year. In addition to the energy crisis and price hikes worldwide, no shocks are expected so far. International financial institutions forecast that the energy sector will stabilize next year. National Bank Governor Antia Angelovska-Bezhoska insisted that the situation is being closely followed and that the central banks has at a disposal an array of instruments to be used un case macroeconomic stability needs to be maintained. “We’ve been closely following developments especially in the energy sector and those related to global rise in prices, but no shocks are expected yet. Inflation is expected to remain moderate,” Angelovska-Bezhoska stressed Tuesday at a news conference focused on the November projections. If the crisis produces prolonged effects, according to her, they will affect several segments in the economy, including inflation, higher pressures, trade balance, etc. “This year, we made a moderate upward correction of the trade deficit – we worsened the trade balance, which has resulted in higher energy prices. However, all relevant financial institutions project that the energy sector will stabilize next year,” said Angelovska-Bezhoska. According to projections, deficit is expected to remain moderate at 3.8% and to be recorded at nearly 2% of the GDP in the medium-term, similarly to a pre-crisis level. Risks to growth are mainly downward but according to an alternative scenario, predicting dropping foreign demands and higher restraint for consumption and investments by domestic companies, growth would be lower on an average of 1.2 percentage points for the period between 2022 and 2023. Effects from the Accelerated Economic Growth Plan, which hasn’t been taken into account in the projections, are considered positive risk. State reserves are at EUR 3.6 billion, according to National Bank data, which have risen, compared to 2008 levels, when they were recorded at EUR 1.5 billion. Positive movements have been recorded considering foreign direct investments standing at EUR 190 million in the first half of 2021. The same period last year recorded foreign direct investments at EUR 130 million. Foreign remittance also registered rise in the first nine months. As regards the banking sector, banks’ solid support towards companies and the citizens is expected to continue. Considering deposits, an annual growth of 7.1% is expected this year and a moderate acceleration up to 8% in the medium-term.