Public spending decreases, the crisis takes its toll

Public spending is one of the first indicators of economic conditions and is the first to strike if there is a crisis.

Any reduction in continuity means the citizens’ refraining from spending and may indicate that the political crisis takes its toll.

Public spending has declined stated the Executive Director of the Union of Chambers of Commerce of Macedonia, Mitko Aleksov.

The reduction in terms of private consumption is evident. There are indications in some sectors for cancellation of orders and review of the scope for the next period – said Aleksov.

According to the governor Dimitar Bogov, if a decrease in terms of public spending occurs for only one month, then it may be accidental. But if the parameters go downwards even further, then we can say that it is a reaction to crisis.

The data on retail trade is indicator for the confidence and purchasing power of the consumer. First signal of crisis is holding back of consumers from spending. Public spending is 80 per cent of GDP. Will there be a reduction, we will know in a while – said Bogov in the meeting with the Turkish investors.