Former Yugoslav Republic of Macedonia: Selected Issues
IMF Staff Country Reports, February 18, 2009
Source details
- Canonical URL
- Former Yugoslav Republic of Macedonia: Selected Issues
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Bibliographic details
- Published: February 18, 2009
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451952711.002
Overview and macroeconomic context
- Real GDP growth accelerated to 5 percent in 2007 and 6 percent in the first half of 2008, from its historical average of about 3 percent.
- Increased investment, partly financed by FDI, is identified as the main driver boosting domestic demand.
- Rapid growth in imports of investment and intermediate goods accompanies the investment surge.
- The current account deficit has widened substantially since 2007 and is described as a major concern for macroeconomic stability.
Key findings
- Growth performance:
- Real GDP growth: 5 percent in 2007.
- Real GDP growth: 6 percent in the first half of 2008.
- Historical average real GDP growth: about 3 percent.
- Demand composition:
- Increased investment is the principal contributor to higher domestic demand.
- FDI is an important financing source for the investment increase.
- Fast-growing imports of investment and intermediate goods reflect the investment-driven expansion.
- External sector risks:
- Current account deficit widened substantially since 2007.
- The widened current account deficit is characterized as a major macroeconomic stability concern.
Analytical focus areas (as listed in the source)
- Commodities
- Electricity
- Expenditure
- Foreign exchange
- Potential output
- Production
- Public investment and public-private partnerships (PPP)
- Public investment spending
- Real exchange rates
Policy implications and priorities (implied by findings)
- Monitor and manage external imbalances to address the substantially widened current account deficit.
- Assess sustainability of investment-led growth given reliance on FDI and rising imports of investment and intermediate goods.
- Strengthen macroeconomic stability frameworks to mitigate risks from rapid demand expansion and external financing needs.
Former Yugoslav Republic of Macedonia: Selected Issues (IMF Staff Country Reports, 2009/061).
Content in this bundle
- Former Yugoslav Republic of Macedonia: Selected Issues; IMF Country Report 09/61; November 11, 2008