Skopje, 29 October 2025 (MIA) - The National Bank will make an upward revision of its projection of inflation, said Deputy Governor Ana Mitreska on Wednesday. Mitreska assessed there is a historically high level of economic uncertainty, which is not only a problem for macroeconomic policymakers but also for the business sector. A key risk, she said, is trade tensions caused by unclear and unpredictable agreements between countries.

Analyzing inflation, she stressed that the rise in prices has significantly calmed compared to the double-digit levels at the end of 2022, and with such shocks, serious effects were to be expected.

“Considering the easing of global tensions, inflation settled at 3.5 percent, but this year saw a certain acceleration to four percent. We are facing prolonged inflation and a certain divergence from inflation rates in the eurozone – the market did not adjust adequately, core inflation remains inert and hovers around five percent due to several other factors and effects, such as strong credit activity, wage growth, etc. We have not changed the interest rate since February, unlike the European Central Bank (ECB), but we have taken other measures that ensure economic resilience. In the medium term, given that inflation is higher (four percent) compared to the projected three percent, it is very likely that we will make an upward revision for this year and reach the desired two percent in the medium term to align with the eurozone,” Mitreska stressed.

Addressing the “Back to Business” conference held by Bloomberg Adria, the Deputy Governor also spoke about geopolitical risks and their impact on the Macedonian economy, as well as economic growth and the stability of the banking sector.

Mitreska said uncertainty and unpredictability have been an unavoidable part of macroeconomic projections for half a decade.

“Unfortunately, the only constant in these circumstances is unpredictability. We are facing a historically high level of economic uncertainty. This is not only a problem for macroeconomic policymakers, but also for the business sector when making long-term business plans. Analyses show that nearly 83 percent of surveyed companies in the EU cited uncertainty as a key factor in making investment decisions,” Mitreska noted.

However, according to the Deputy Government, the economy is handling these risks well, both on a local and global level.

“There has also been an upward revision of global economic growth due to sound policy implementation and the rapid adaptation of businesses, as well as because tariffs turned out to be lower than expected from the April announcements. In such a constellation of risks, we cannot rely on short-term projections but must develop alternative scenarios,” Mitreska said.

Photo: MIA