Saturday, 20 October 2018 | News today: 6

Bogov: Macedonia’s economic growth at 0.5% in 2017, weakest rate in five years


The National Bank of the Republic of Macedonia (NBRM) remains on its projection for economic growth at 0.5 percent in 2017. NBRM Governor Dimitar Bogov said that 2017 is one of the weakest years in terms of economic growth in the last five years, and the NBRM projected growth to reach around 0.5 percent in 2017.

We remain at the projection at 0.5 percent in 2017, which was confirmed in Q3 momentum. We will be very close to the real growth, but we will know this in March 2018 when we will have the Q4 data in 2017, Bogov told reporters at the financial education workshop of journalists entitled “Proper reading and interpreting the reports of the National Bank and other regulatory institutions.”

Bogov expects the next 2018 to be better at the economic plan.

“In order to improve, several conditions need to be met. And that is to have a more stable political environment, to have certainty which means to improve the investments, increase personal consumption, but also to continue the flow of foreign direct investment that we had in the previous period and which is the bearer of the economic growth,” Bogov underlined.

Bogov answering reporters’ question underlined that the main reason that investments are negative this year is the prolonged political crisis and the uncertainty felt by investors.

He does not expect change in interest rates in 2018, unless domestic shock occurs. However, in 2019, when the European Central Bank (ECB) begins to tighten the monetary policy, Macedonia will most likely follow that policy.

“The US Fed (Federal Reserve System) started to increase interest rates, and the European Central Bank (ECB) will start with the process as of 2019. Since we are tied to the euro, it can be expected our monetary policy to follow the ECB monetary policy, unless a shock on the domestic market occurs. If it is stable then it is anticipated that interest rates will be maintained, and in 2019, when the ECB begins to tighten the monetary policy, we would probably follow that policy,” Bogov said.

He said that legal changes are being made for the National Bank of the Republic of Macedonia to be able to share data it receives through fast money transfer with other institutions in the county.