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UN projects Macedonia's economy to grow 3 pct in 2019

Source: Xinhua| 2019-01-23 03:32:06|Editor: Mu Xuequan
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SKOPJE, Jan. 22 (Xinhua) -- The economy of Macedonia is projected to grow by 3 percent in 2019, according to the latest United Nations (UN) World Economic Situation and Prospects 2019 (WESP) report.

According to the report, Macedonia's economic growth climbed to 2.5 percent in 2018 from zero in the previous year.

The report shows that in 2018 the unemployment rate in Macedonia dropped to 21 percent from 22.4 percent in the previous year.

The prospect of the country joining the European Union (EU), confirmed by the European Commission's 2018 strategy paper, and the decision by the European Council to open accession negotiations with Macedonia and Albania (if certain conditions are met) remain important macroeconomic policy anchors.

The inflation rate in Macedonia in 2019 and 2020 is projected at 2.1 percent.

In 2020, the growth rate of Macedonia's economy is projected to remain at 3 percent, on par with that of Montenegro.

According to the UN report, the south-eastern European region's aggregate GDP is expected to expand by 3.7 percent in both 2019 and 2020, supported mostly by investments and exports.

"Stronger growth is needed to address the region's diverse problems, including the need for reindustrialization and a low labor force participation rate," reads the report.

Macedonia is formally called the Former Yugoslav Republic of Macedonia (FYROM) by the UN. The country is about to change its constitutional name to the Republic of North Macedonia.

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