Sunday, 17 October 2021 | News today: 0

Increased optimism about the global and Macedonia’s economic growth


Columnist: Timco Mucunski, PhD student in Law

Last year’s developments in the Middle East (Syria, Iraq, the relations between Israel and Palestine) were a strong indication of the great concern and fear in the world of the unfavorable development of political and security conditions present in the region mentioned above, which in the last period of time has produced one of the largest humanitarian or refugee crisis in the world. Of course, we should not neglect the ongoing and worrying situation in Ukraine, the deeply spoiled relations between Russia and the western countries, the extended engagement of NATO in the new Decisive Support” mission in Afghanistan, the minimal progress in the negotiations over Iran’s nuclear program, the continuing tensions between the US and North Korea and the global rise of terrorism.

The mentioned political and security situation, together with the growing poverty and the emergence of Ebola, predictably and undoubtedly will have additional negative repercussions on the overall global economic and financial trends in 2015. Little hope of achieving more solid results and growth of the global economy this year are based on the announcements of gradual global economic recovery, global decline in the unemployment rate, constant and gradual reduction of the global price of oil and oil products, the announcement of reaching a comprehensive agreement about climate change and so on.

The anticipated rapid growth of the economies of the US and China are among the main reasons that bring additional optimism for the growth of the global economy in values above 2 percent. Relevant global financial institutions and economic analysts around the world expect this year’s growth of the US economy to be around 3 percent, the growth of the Chinese economy again to be above 7 percent, unlike the small expected growth of 0.8 percent within the Еurozone, the likely minimal growth in Japan and the likely recession in Russia.

According to the forecasts by the International Monetary Fund, the growth of the global economy in 2015 will be around 3.8 percent, which is far more optimistic than last year’s result, which was 3.3 percent.

While at home, the results achieved in the Macedonian economy in 2014 inspire strong optimism that 2015 will again be among the top European economies with evident economic growth.

Let us remind that the Macedonian industry in the past year has the second highest economic growth in Europe, that in the last fourteen months our growth was 7.5 percent, or more than 5 percent in the past ten months of 2014. The projected economic growth in the Republic of Macedonia in 2015 is 4 percent and if achieved, it will be one of the highest in Europe.

In 2015, high on the priority list of the Macedonian Government remain the activities that will be directed towards creating new jobs, improving the overall business climate, attracting foreign investments, increased cooperation of the Macedonian companies with those of the free industrial-technological zones, the increase in the export of Macedonian products and services, encouraging entrepreneurship and more. The construction of many infrastructure projects aimed at improving the road and railway network, the improvement of local infrastructure networks, the construction and renovation of many schools and hospitals will give a serious contribution to the above stated activities.

In terms of foreign investments, 2014 for the Republic of Macedonia could be regarded as one of the more successful, and the results in this area are the result of the intensive promotion of the country as a destination with excellent business climate, whose high ranking internationally is strongly confirmed through positive reports of “Doing Business” and the World Bank. This remarkable results are expected throughout this year as well, and many foreign companies have already announced or are ready to announce their new business investments in various areas of the country.

In December last year, an agreement was signed with the US company “Cap-Con” which promised opening of a factory with 400 new jobs in the free industrial-technological zone in Skopje, two German companies announced investments in Ohrid, providing 3,000 jobs, the US company “Genterm” promised more than 2,000 jobs, and there are announcements for new investments in the newly opened areas in eastern Macedonia.

It is publicly known fact that foreign companies invested over 250 million euros and created over 11,000 news jobs in Macedonia over the last year. Exports from the free zones throughout 2014 amounted to 1.170 billion euros and represented about one third of Macedonia’s total exports (it was even 54 percent higher than exports in 2013), while exports in 2015 is expected increase by additional 10-15 percent.

Macedonia’s authorities and institutions, providing a stable economic, monetary and financial policy, last year managed to achieve remarkable results, which together with the optimistic announcements for this year have additionally encouraged foreign investors to choose our country as a potential and attractive center to direct their capital and a place to create extra profits. Such positive activities also increase the opportunities and hopes of our businessmen and citizens that many set goals in terms of achieving solid economic growth will be realized in 2015, the economic security will increase, providing a better standard of living and strengthening the prospects for further development of the country.