News 02 Nov 12

Macedonia Bank Warns of Zero Growth in 2013

Macedonia is expected to finish this year on zero per cent economic growth, the Central Bank Governor says, forecasting the same figure for 2013 as well.

Sinisa Jakov Marusic

Macedonian Central Bank | Photo by: Sinisa Jakov Marusic

Bank Governor Dimitar Bogov blamed economic stagnation on shrinking exports caused by the European crisis. Macedonia exports more than half of its produce to European markets.

“Next year is going to be difficult. We forecast economic growth of about zero percent, the same as in 2012,” Bogov said.

Bogov said he expected the country to hold up by exporting more next year from new export-oriented companies that have recently opened factories in Macedonia.

“We will see foreign investments, some have been already starting the production, and it should have beneficial effects,” he said.

In the past few weeks, the US firm Kemet Electronics Corporation opened a factory near Skopje. So did the Italian company Technohose and the Russian firm Prodis, part of the the pharmaceuticals holding Protek Group.

India's Maderson Group and Germany's Kromberg & Schubert this year started building factories, which should open next year. A second factory is also opening in the country operated by Johnson Controls.

“The government has also launched two capital infrastructure projects, which are going to be beneficial for economic growth,” Bogov said, referring to projects to build or reconstruct railways and highways.

Bogov said the expected price rise in metals next year should increase Macedonia's GDP, as the metal industry is the backbone of the economy.

In mid-September, the Statistical Office confirmed that the country was in a recession, after reporting a second consecutive quarter of negative growth.

The agency reported minus 0.9 per cent growth in the second quarter of 2012.

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