- Friday, November 10, 2017 9:14 AM
Brussels, 10 November 2017 (MIA) - The European Commission says in its latest Autumn Economic Forecast that Macedonia will end the year with a 1.7 percent growth.
"The economy contracted in the first half of the year, as political uncertainties lingered and investment declined sharply. With a new government in office since June, that seems committed to implementing fiscal and structural reforms and to providing support to domestic demand and employment, positive investor sentiment should return. Risks to fiscal sustainability may arise if the government increases corporate and wage subsidies as planned, without implementing durable consolidation measures", reads the report.
The EC projects a GDP growth of 2.7 percent in 2018, followed by 3.2 percent in 2019. Employment is expected to rise, while unemployment is set to drop to 21.4 percent in 2018 and 21 percent in 2019.
"The economy is expected to recover over the forecast horizon, as investor sentiment is likely to improve with the breakthrough in the country’s political stalemate. GDP growth is projected to be driven increasingly by domestic demand. Household spending should benefit from further expected employment gains, bolstered by additional public funding for labour market measures. Disposable income is set to benefit from the rise in minimum wages, subsidised by the government, and by the increase in transfer payments, both effective since September 2017. Real net wages are expected to continue to increase at a slower pace, as consumer price inflation is picking up, driven by developments in core inflation", reads the report. ik/09:13
All Rights Reserved.This material may not be stored, published, broadcast, rewritten or redistributed in any form, except with the prior express permission of Macedonian Information Agency.
- 7:07 PM | Police respond to ‘shots fired’ at London’s Oxford Circus
British police flooded London’s busy Oxford Circus area Friday after receiving multiple reports of '...
- 5:50 PM | More than 230 killed in mosque in Egypt
Militants have launched a bomb and gun attack on a mosque in Egypt's North Sinai province, killing 2...
- 5:35 PM | New Ukraine, India Ambassadors to Macedonia present credentials to President Ivanov
The new Ukrainian and Indian Ambassadors to Macedonia, Natalia Zadorozhnyuk and Pooja Kapur respec...
- 5:02 PM | One in three women experienced some form of violence: UN Representative to Macedonia
Globally, one in three women or girls have experienced some form of violence, the UN Resident Repres...
- 5:02 PM | Appellate Court rules retrial for 'Monster' case
The Appellate Court accepted Friday the appeal filled by the defense in the 'Monster' case - murder ...