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Macedonian growth expands at lower pace in H1: EU Commission report

Xinhua, November 11, 2016 Adjust font size:

After accelerating to 3.7 percent year-on-year growth in 2015, Macedonian GDP growth slowed down markedly in the first half of 2016 to 2.1 percent year-on-year, local media here said Thursday citing the 2016 Autumn Economic Forecast of the European Commission (EC).

According to this report, the Macedonian economy expanded at a slower pace in the first half of 2016 and this is mainly attributed to the long political crisis here.

On the other hand, the EC foresees growth to pick up again on the back of a renewed surge in investment in 2017 and robust household spending, provided the country's political crisis recedes.

Government plans for fiscal consolidation become increasingly elusive, given the lack of identified measures and repeated fiscal slippages, the Commission said in its report.

However, the Commission also projects a gradual rebound in investment by private domestic and foreign companies for 2017 and 2018, assuming the political stalemate to be overcome the after Dec. 11 elections, local media cited.

Government representatives said reform had been praised by the European Commission although they admitted that much has to be done. Endit