Minoski: Economic growth higher than the projected one if political crisis is resolved

Skopje, 11th October 2016 (MIA) – Macedonian economy in 2017 can generate even higher economic growth than the projected one of 3%, should the political crisis be resolved in December. Minister of Finance, Kiril Minoski, talked about the economic policies implemented by the Government and the effects therefrom, as well as the entrance of foreign investments and the job creation, in an interview for the “Voice of America”.

- World Bank projected 3.3% growth of the Macedonian economy in 2017. Our projections were more conservative - 3% growth. However, even higher growth might be generated. One of the factors having effects thereto is the resolving of the lengthy political crisis. I base these forecasts on the data for the first two quarters of this year. Despite the effects from the political crisis, 2.3% growth was generated in the second quarter in 2016, as a result of the export activities from the TIDZs, as well as the growth observed in the other segments of the industry, such as the traditional segments, where higher economic activity, compared to last year, was registered, Minoski said.

As the Minister said, top priority of the Government of the Republic of Macedonia is to boost investments and economic growth, which will contribute to increased employment and better living standard of the citizens. He pointed out that unemployment in the country was reduced to the record low level of 24%, however, the Government would continue its efforts aimed at job creation by implementing series of economic policies.

- Job creation requires investments. Activities the Government undertakes can be classified as activities aimed at attracting foreign investments and activities aimed at encouraging the domestic companies to invest.  We have introduced a stimulating tax policy for the domestic companies, hence reinvested profit is tax exempted.  We thus encourage investments in technology, which contributes to creation of new products and new services and a higher value added goods, Minoski said, concluding that all this gives rise to the need for job creation.

Minoski indicated the active employment measures the Government implements through the “Macedonia Employs” Project as an essential job generator.

Asked about the importance of the Macedonian Diaspora for the economy in the country, the Minister said all those having decided to invest in the country or to link with the domestic companies – suppliers were in a “win-win” position. On one hand, foreign capital and technologies enter the country and jobs are created, while on one other, all those investing in the country are provided an excellent business climate, favourable tax policy and quality products and services by the Macedonian companies.