The inflation rate is not expected to rise, and movement in primary commodity prices until the end of the year is expected to be adjusted downward, National Bank Governor Anita Angelovska-Bezhoska has said.

According to her, the inflation rate in the first three months of 2020, just like in 2019, is relatively low and stable, and the average inflation rate as with March is 0.6 percent, which is below projections.

The pandemic has negatively affected global demand, leading to a downward adjustment in prices for most stock exchange products. This is especially visible in oil prices on world markets, where the failure to reach an agreement between the largest producers had an additional effect. Such shifts will have a direct downward effect on the inflation rate in the Macedonian economy through lower fuel prices at home, which is, in fact, already visible in March data on inflation. These lower prices may further affect other prices, Angelovska-Bezhoska told business magazine Kapital.

The Governor points out that in addition to the direct effect caused by lower import prices, a downward effect on prices in the country is also expected through domestic demand. Some of the measures taken to curb the spread of the virus, she notes, have an effect on postponing household consumption, which could also lead to a downward adjustment of prices in the Macedonian economy.

Angelovska-Bezhoska says economic decline is expected due to the coronacrisis, but also an economic recovery next year.

Unlike 2008, when the crisis was sparked by a serious disruption of macroeconomic fundamentals on a global scale, we’re currently facing a non-economic shock, and as such, it should neither reflect on the long-term economic growth potential nor lead to deeper structural problems, Governor Angelovska-Bezhoska notes.