Inflationary growth will slow down this year, both in developed and developing economies, as a result of the stabilization of raw material prices, the reduction of pressures on the supply side and the decisive reaction of the monetary authorities, it was assessed at the meeting in Skopje.
The Central Bank (CBCG) announced that the Governor of the CBCG, Radoje Žugić, is participating in the Annual Forum of the Vienna Initiative, hosted this year by the National Bank of North Macedonia and held in Skopje. The meeting was opened by the governor of the National Bank of North Macedonia, Anita Angelovska Bezoska, as stated by the supreme monetary institution. In the first panel session, entitled “Monetary and Fiscal Policy in a World of High Inflation”, Žugić, Governor of the Croatian National Bank Boris Vujčić, Governor of the National Bank of Slovakia Peter Kažimir, Minister of Finance of North Macedonia Fatmir Besimi and Vice President of the European Investment Bank (EIB) also spoke. Liliana Pavlova.
“It was announced at the meeting that inflationary growth will slow down this year, both in developed and developing economies, as a result of the stabilization of raw material prices, the reduction of pressures on the supply side and the decisive reaction of the monetary authorities,” the announcement states.
In the introductory speeches at the first panel session, it was pointed out that the signs of slowing down are already visible, but that it is still too early to declare victory over inflation.
“It is crucial to preserve price stability, but also financial stability, because that is the only way to preserve public trust.” At the same time, financial systems should adapt to the transition to a green and digital future,” the meeting said.
Žugić referred to the situation in Montenegro, stating that one of the key internal factors affecting inflation is the recent increase in wages, which has not been accompanied by productivity growth or the creation of new value. He said that wage growth stimulated demand, not only for products and services, but also for loans, which to a certain extent stimulated inflationary expectations and acted in an inflationary direction.
“In the medium term, this may lead to an increase in the budget deficit, the servicing of which is already difficult, due to the worsening of borrowing conditions,” Žugić added.
The Vienna Initiative is a platform that connects international financial institutions, banking regulators and representatives of banking groups from Europe, present in the region of Central and Southeastern Europe.
It was established by the coordination of the European Bank for Reconstruction and Development (EBRD), the EIB, the European Commission (EC), the International Monetary Fund (IMF) and the World Bank (WB), during the first wave of the global financial crisis in 2009. The Annual Forum In Skopje is attended by central bank governors from the regions of Central and Southeast Europe and high representatives of the EIB, EBRD, IMF, World Bank, the European Central Bank and the EC, as well as the banking sector.