1 / 11

Economic Developments in Macedonia: Current Landscape and Future Challenges

This presentation by Denislav Dyakov and Magdalena Tsolova provides a comprehensive overview of Macedonia's economic situation, highlighting its vulnerability to European economic shifts. As the least developed of the former Yugoslav republics, Macedonia has recently taken steps towards economic stability. Key sectors like retail, construction, and agriculture showed notable GDP growth in 2007. However, the country faces challenges, including high unemployment rates and reliance on foreign investments, compounded by the potential negative impacts of the Global Financial Crisis on its transition to a market economy.

dalton-calhoun
Télécharger la présentation

Economic Developments in Macedonia: Current Landscape and Future Challenges

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Macro Developments of MACEDONIA Presented by: Denislav Dyakov Magdalena Tsolova

  2. Overview of Macedonian economic situation • vulnerable to economic developments in Europe and the Region • the least developed of the Yugoslav republics • Started maintaining economic stability recently

  3. Goods Market – GDP Growth by sectors: For 2007: • - retail sector – 10.2% • - construction - 9.7% • - agriculture – 7.2% • - industrial output – 8.3% • GDP by sectors: • - agriculture – 11.4% • - industry – 27.2% • - services -61.4% • GDP(PPP) – $18.97bil

  4. Goods Market – GDP cntd.

  5. Goods Market - BoP 2007 2008 Current Account: -596.83 -1.209.55 Goods: -1.629.75 -2.551.83 Imports: -4.979.24 -6.522.69 Exports: 3.349.49 3.970.86 Services: (Net) 34.98 2.17 Current Transfers: 1.382.96 1.448.28 Capital Account: 4.91 -18.42 Financial Account: 633.93 1.227.94 *Central European Free Trade Agreement (CEFTA) 2007 2007 2008

  6. Goods Market - FDI FDI 2006(in millions) : €345 FDI 2007(in millions) : €240 Most important contributors to FDI in Macedonia: Austria – 27.4% Slovenia – 16.1% Bulgaria – 13.8% France – 9.1%

  7. Banking System Banking system in the Republic of Macedonia comprises 18 banks and 12 saving houses Main features • Banking activities in the Republic of Macedonia are regulated under the Banking Law • There are no legal obstacles for entrance of foreign banks in the Macedonian financial market; • Foreign banks are also enabled to perform financial activities in the Republic of Macedonia by opening their branches;

  8. Asset Market • High inflation increase in 2008 • Sharp increase in foreign exchange reserves in 2007 • Increased credit growth • Credit control through increased reserve requirements or capital requirements on risky loans

  9. Labour Market • 37% official rate of unemployment • “grey” economy • Problems with human capital

  10. Conclusions: The Global Financial Crisis will have a negative effect on the following issues: Transition from planned economy to a liberal market economy. Shrinking domestic market(Greek trade embargo & Western Trade embargo, decreased demand) Worsen business climate, lower FDI

  11. THANK YOU FOR YOUR ATTENTION

More Related