The Governor of the National Bank, Anita Angelovska-Bezoska, published a note in which she analyzes the work of the National Bank.

As we count down the last hours until the New Year 2023, we are reminded of all the events that marked the passing year and what we will remember it for. In 2022, we celebrated the jubilee of 30 years of monetary independence, and 30 years of building one of the pillars of statehood. In the context of numerous crisis episodes and historical hardships that we witnessed in the past three decades, the maintenance of monetary sovereignty undoubtedly required great commitment, professionalism and leadership by the central bank, as well as support from other social actors.

Working according to the acta non verba principle, we built this institution step by step, investing in its human potential, without which it would have been impossible to preserve and strengthen monetary stability. We maintained the stability of the denar, one of the symbols of our statehood and the anchor of the stability of our economy.

But every coin has two sides, and every period has its pros and cons. So this year 2022, unfortunately, will be remembered in world history as another year of crisis – a year in which a war began on European soil, a year of energy crisis, a year in which the world recorded one of the highest inflation rates in the past few decades. It is for this reason that all central banks, including us, changed the long-term course of monetary policy and started the cycle of its tightening.

The purpose of these changes is to stabilize price growth, prevent a decrease in the purchasing power of citizens, and ensure predictability in decision-making. In fact, we have been doing it successfully for the past three decades, a period in which higher inflation rates have been observed only occasionally in our country.

These episodes, like the current one, were largely a reflection of external shocks that affected our small, open and energy-dependent economy, but also of the structural weaknesses of the economy that were not paid adequate attention to in the past decades. Throughout the years, the National Bank has successfully responded to these challenges and with its measures and policies has consistently adhered to its goals – a stable currency and stable prices.

We are vigilantly monitoring this crisis situation and are ready to take further steps to ensure medium-term price stability, which is a prerequisite for sustainable economic growth and a better life for citizens. Next year, we expect a gradual slowdown in inflation, which in the medium term would return to historical rates of around 2%.

In the end, I would like to point out that this year has taught us that we should always think and act one step further – the world is facing and will face major changes, among other climate and energy challenges, but also digitalization. It is more than obvious that the main emphasis should be placed on sustainability – sustainable energy, sustainable agriculture, and sustainable finance. That is why structural reforms are needed that will strengthen the resilience of the economy, so all of us who are policymakers should think and act responsibly, strategically and sustainably, Angelovska-Bezoska said, sending wishes for a successful and much better 2023!