Macroeconomic Forecast Macedonia

In its latest country review, the IMF has warned Macedonia to "be prepared" for the downside risks that come with the expected downturn in the Eurozone. At the same time, it praised the government's "sound" macroeconomic policies, including low debt and a relatively small fiscal deficit, saying that they will provide important buffers. The IMF now forecasts growth of 2% in 2012, below our target of 3%, while its forecast for inflation (2%) is also slightly below our projection (2.4%). This sharp downward revision reflects deteriorating conditions in the region, which we acknowledge pose downside risks to our own short-term

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