Macedonia Drafts 'Upbeat' Budget

The GDP growth for 2011 should reach 3.5 per cent, more than the two per cent projected for this year, Finance Minister Zoran Starveski told reporters on Thursday.

“The GDP projection is real, being based on the growth of the European economy as a key factor for the expansion of the Macedonian one, Starveski said.

Starveski said he believes there are solid chances for this year's GDP growth rate to meet the projected two percent, in light of the latest indicators for industrial production.

A projected inflation rate of 2 to 2.5 per cent and a state deficit of 2.5 per cent of GDP for next year are identical to the figure for 2010.

Starveski said he also hoped Macedonia's GDP growth rate would reach five per cent in 2012 and 2013, matching the pace the state had in 2008 before the global financial downturn affected country’s exports and reduced the local economy.

The country’s economic experts have been saying Macedonia needs a GDP growth rate of at least five per cent for 10 or more consecutive years in order to significantly improve conditions at home.

The country suffers a staggering unemployment rate of 33.7 per cent.
 
The State Statistical Office this week revealed an increase in the country's poverty level, with 31.7 per cent of the population in 2009 living below the poverty line.