Macroeconomic Forecast Macedonia

To read the full article, please choose one of the following options:

Macedonian inflation ticked up to 0.4% y-o-y in May, from -0.2% in April. The increase owed principally to strong price growth of 7.9% y-o-y in the utilities component, coupled to still-positive price growth of 1.5% in the food component. By contrast, the main factor keeping inflation weighed down was the transport component, where prices contracted by 13.7% y-o-y. Going forward, we maintain that Macedonian inflation will remain weighed down through the medium term on the back of ongoing global and domestic demand destruction. We forecast CPI growth of 0.3% y-o-y at end-2009, followed by 2.5% at end-2010.