The economy, more or less, is affected by the political uncertainty in Macedonia lingering for over a year, Minister of Economy Driton Kuchi said Tuesday at a debate on the impact of the political crisis over the economic state of Macedonia.
“In addition to the policies and measures being continuously taken to support the economy and investments so as to alleviate the damages caused to the economy, it is necessary the political crisis to be settled as soon as possible. The crisis should serve as a lesson for all and the business sector should be the driving force of the economy. It has to play the role of genuine partner of the state and to remain constantly engaged in the creation of policies and measures aimed at economic development,” Minister Kuchi said in his address at the debate organized by the Tetovo State University.
A 3.7 percent growth, he added, is forecast according to the World Bank, however the longlasting political crisis has the tendency to leave economic consequences. The European Bank for Reconstruction and Development (EBRD) expects growth to remain above 3 percent in 2016 and 2017.
“The organization says that in addition to the ongoing political crisis, the economy in Macedonia is functioning in the midst of a slow growth in Europe and uncertainties emerging from the global economy,” he said.
“As regards economic growth, it should be expected to slow down due to the overall effects of the political crisis. The National Bank of Macedonia (NBRM) has decreased the GDP growth projection from 3.8 percent to 3.5 percent (main scenario) and 1.6 percent (pessimistic scenario),” he stated.
Referring to domestic companies, Kuchi said their activities had always been related to domestic policies and the business environment.
“In such circumstances, the biggest threat is that they are delaying the launch of investments in connection to innovation, creation of new products, modernization of the production process and investments in human capital,” the Minister noted.
He vowed the country would continue to implement economic policies aimed at stimulating economic activities, creating jobs, subsidizing farmers, stimulating construction activities and improving the sectors of tourism and mining.
According to Kuchi, foreign investments are most affected by the political crisis.
“Therefore, it is of vital importance the situation to be resolved as soon as possible. According to the investors, social and political stability as well as Macedonia’s EU integration bid play a crucial role in stabilizing businesses and the economic growth of the country,” Minister Kuchi said during the debate.