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Advantages of the Macedonian Financial System

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					Macro Developments of
    MACEDONIA

                   Presented by:
                  Denislav Dyakov
                Magdalena Tsolova
      Overview of Macedonian
        economic situation



 vulnerable to economic developments in Europe
  and the Region

 the least developed of the Yugoslav republics

 Started maintaining economic stability recently
                          Goods Market – GDP
                                                                                         Growth by sectors:
8
                                                                                                    For 2007:
                                                                                         •- retail sector – 10.2%
6
                                                                                         •- construction - 9.7%
4
                                                                                         •- agriculture – 7.2%
                                                                                         •- industrial output – 8.3%
2

                                                                                         •GDP by sectors:
0                                                                                        •- agriculture – 11.4%
     1997


            1998


                   1999


                          2000


                                 2001


                                        2002


                                               2003


                                                      2004


                                                             2005


                                                                    2006


                                                                           2007


                                                                                  2008
                                                                                         •- industry – 27.2%
-2
                                                                                         •- services -61.4%
-4
                                                                                         •GDP(PPP) – $18.97bil
-6
Goods Market – GDP cntd.
          Goods Market - BoP
                      2007                      2008
Current Account:     -596.83                 -1.209.55
Goods:             -1.629.75                 -2.551.83
  Imports:         -4.979.24                 -6.522.69
  Exports:          3.349.49                  3.970.86
Services: (Net)        34.98                      2.17
Current Transfers: 1.382.96                   1.448.28
Capital Account:        4.91                    -18.42
Financial Account:    633.93                  1.227.94

*Central European Free Trade Agreement (CEFTA) 2007
              2007          2008
        Goods Market - FDI

• FDI 2006(in millions) : €345
• FDI 2007(in millions) : €240

• Most important contributors to FDI in
  Macedonia:
  – Austria –    27.4%
  – Slovenia –   16.1%
  – Bulgaria –   13.8%
  – France –     9.1%
                     Banking System

      Banking system in the Republic of Macedonia
        comprises 18 banks and 12 saving houses

                             Main features
 Banking activities in the Republic of Macedonia are regulated under
   the Banking Law

 There are no legal obstacles for entrance of foreign banks in the
   Macedonian financial market;

 Foreign banks are also enabled to perform financial activities in the
   Republic of Macedonia by opening their branches;
                  Asset Market


 High inflation increase in 2008

 Sharp increase in foreign exchange reserves in 2007

 Increased credit growth

 Credit control through increased reserve requirements or
  capital requirements on risky loans
                  Labour Market
 37% official rate of   Unemployment
                                  by
                            duration
                                         2000      2003      2004

  unemployment
                          Less then a   12,451     9,600     5,207
                               month
 “grey” economy             1-5        12,336    16,700    18,513


 Problems with human        6-11       18,834    20,700    21,342

  capital                   12-17       12,108    18,400    20,466


                            18-23       20,407    10,600    14,399


                           2 years       3,195     2,100     2,614


                           3 years      24,399    36,900    27,791


                         More than 4    157,982   200,900   198,955
                              years
                          Long term     83.33%    85.12%    85.43%
                            unemploy
                               ment

                         Discouraged    63.38%    65.59%    65.43%
                              workers
              Conclusions:

• The Global Financial Crisis will have a
  negative effect on the following issues:

  – Transition from planned economy to a liberal
    market economy.

  – Shrinking domestic market(Greek trade
    embargo & Western Trade embargo,
    decreased demand)

  – Worsen business climate, lower FDI
THANK YOU FOR YOUR ATTENTION

				
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posted:6/25/2011
language:Romanian
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