NORTH MACEDONIA
Against a challenging backdrop, North Macedonia saw GDP growth slowing down markedly in FY:22 (to 2.1% from 3.9%
in FY:21), with the economy returning to pre-COVID-19 levels, albeit with a delay compared with regional peers
Economic growth is set to remain subdued in FY:23, reflecting headwinds from (still) high inflation, rising interest rates and weak external demand
CYPRUS
Despite the challenging backdrop and Cyprus’ strong ties with Russia, the economy remained resilient in FY:22 (GDP, up 5.6% against 6.6% in FY:21), underpinned by a surge in exports of tourism & business services
Tightening financing conditions and softening external demand cannot but weigh on Cyprus’ economic growth in FY:23, which, nonetheless, should continue to overperform the euro area average
APPENDIX:
DETAILED MACROECONOMIC DATA
REGIONAL SNAPSHOT: MACROECONOMIC INDICATORS & FINANCIAL MARKETS
Countries in Focus in this Issue: North Macedonia & Cyprus
Southeastern Europe & Mediterranean Emerging Market Economies: Bi-Weekly Report 7 - 20 March 2023