Docstoc
EXCLUSIVE OFFER FOR DOCSTOC USERS
Try the all-new QuickBooks Online for FREE.  No credit card required.

Advantages of the Macedonian Financial System

Document Sample
Advantages of the Macedonian Financial System Powered By Docstoc
					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

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:9
posted:6/25/2011
language:Romanian
pages:11