Macedonia's economy will expand by 4.5 percent next year, boosted by exports and investments, up from growth of at least 3.5 percent in 2011, Vice Premier and Finance Minister Zoran Stavreski told Reuters on Friday.

He also said the budget deficit is next year expected to fall to 2.2 percent of gross domestic product (GDP) from some 2.5 percent this year, although Macedonia plans large investments in the transport and energy sectors in 2012.

"This year we are already seeing signs of recovery of the economy, exports increased by 44 percent in the first four months of 2011," Stavreski told Reuters at the sidelines of a regional economic conference in Slovenia.

Stavreski said exports in the whole of 2011 will be up by some 20 to 30 percent, boosted by high prices in the metal industry, which is one of Macedonia's main exporting sectors, and by penetrating new markets, including the former states of the Soviet Union, North Africa and the Middle East.

At present, about two-thirds of Macedonia's exports go to the European Union.

The government drew down EUR 220 million in March from a precautionary International Monetary Fund credit line worth a total of EUR 390 million. Both the IMF and the government have predicted growth this year of between 3 and 3.5 percent.

Stavreski also said Macedonia was confident it would manage to keep inflation below 3 percent per year in the medium-term, down from an inflation of about 4 percent this year.

"As long as we keep fiscal discipline and budget deficits low, I do not think we will have a problem to keep control of inflation," said Stavreski.