Political crisis slows Macedonia's economic growth: World Bank

The Macedonian economy grew by 2.4 percent in 2016 and is expected to grow by 2.8 percent in 2017 and 3.3 percent in 2018, World Bank representatives said Thursday.

While presenting its latest economic report on the Western Balkans, World Bank country director for the region, Ellen Goldstein, told reporters Macedonia's economic growth had significantly slowed during 2016.

The slowdown came as a result of lowered investments due to the political crisis here, she said.

Goldstein told reporters that Macedonia's debt had increased, which also created concern.

However, the World Bank representatives noted that the achieved growth of 2.4 percent had contributed to job creation in Macedonia.

Consumption was the main generator of growth, supported by improvements in the labor market and higher salaries, as well as public sector transfers, the report said.

World Bank officials said Macedonia needed fiscal consolidation and structural reforms in order to stabilize the public debt.

The political crisis here has further deepened following the Dec. 11 elections which have failed to lead to the formation of a new government.

Currently, the Social Democratic Union of Macedonia (SDSM) party is requesting for parliamentary proceedings to continue after they were suspended, so as to pave the way for the creation of a new government.

The request comes after Macedonian President Gjorge Ivanov refused to mandate SDSM leader Zoran Zaev to form new government even though Zaev had secured, through a coalition, a majority of seats in parliament: 67 out of 120.

Rival party VMRO-DPMNE, on the other hand, is demanding fresh general elections. Endit