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World Bank predicts Macedonia will have the lowest economic increase in the region


       
Skopje, 6 April, 2017 - 14:41 (META) 

The World Bank predicts that Macedonia will have an increase in its economic growth of 2.8%, which is the lowest in the region, according to the regular economic report for the Western Balkans.

The increase, as stated in the report, is significantly slow due to the decrease in investments, which were affected by the political crisis. The increase was largely driven by construction, mainly through public investments of the motorways.

The fiscal deposit has been reduced, however at the expense of the reduced capital investment.

“The share of capital investments has declined, while current spending has increased in 2016, and 30% of the Government’s total spending is for pensions”, said the economist from the office of the World Bank in Macedonia, Bojan Shimbov.

The main recommendations for Macedonia are fiscal consolidation and structural reforms, which will be needed to stabilize the public debt.