Macedonia's current account gap narrowed 71.5% y/y to €31.5mn in January-August thanks to a robust growth in exports coupled with soft imports, preliminary central bank data showed. The eight-month deficit is equal to 0.4% of the projected 2015 GDP and is well covered by foreign direct investments (FDI) at 1.7% of GDP.
Large foreign investments in manufacturing have helped boost Macedonia's exports. Presently, two of the top three exported goods (catalysts and wiring sets) are produced by foreign investment capacities. Export growth must have also been helped by the weak euro, to which Macedonia is pegging its denar currency.
Macedonia's merchandise trade deficit shrank 5.9% y/y to €1.16bn in January-August, as exports climbed 11.1% y/y to €1.94bn and imports rose 4.1% y/y to €3.1bn. The services surplus widened 17.7% y/y to €268.8mn.
Furthermore, the secondary income surplus edged up 0.4% y/y to €1.01bn. On the other hand, the primary income deficit expanded 36% y/y to €147mn.
In August alone, the current account posted a surplus of €34.1mn, down from €75.4mn in August 2014, reflecting smaller services and secondary income surpluses, as well as a larger primary income deficit.
For the 12 months to end-August, the current account surplus was €10.4mn, or 0.1% of GDP.
| Current account, €mn | ||||
| 2014 | 2015 | |||
| Aug | Jan-Aug | Aug | Jan-Aug | |
| CURRENТ ACCOUNT | 75 | -111 | 34 | -32 |
| - Credit | 530 | 3,746 | 513 | 3,996 |
| - Debit | 454 | 3,857 | 479 | 4,027 |
| Goods and services | -65 | -1,007 | -98 | -893 |
| - Credit | 354 | 2,584 | 346 | 2,847 |
| - Debit | 419 | 3,591 | 444 | 3,740 |
| Goods | -136 | -1,236 | -132 | -1,162 |
| - Credit | 219 | 1,746 | 229 | 1,941 |
| - Debit | 355 | 2,982 | 361 | 3,103 |
| Services | 71 | 228 | 33 | 269 |
| - Credit | 135 | 838 | 117 | 906 |
| - Debit | 64 | 609 | 83 | 637 |
| Primary Income | -16 | -108 | -18 | -147 |
| Secondary Income | 157 | 1,005 | 151 | 1,009 |
| Source: Central bank |
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