Macedonia’s GDP growth slows to 2.6% y/y in Q2

By bne IntelliNews September 15, 2015

Macedonia’s real GDP growth slowed to 2.6% y/y in the second quarter from 3.2% y/y the quarter before, statistics office data showed. The country’s economy expanded by 3.8% in 2014.

The production approach breakdown shows that in Q2 the highest y/y increase of 13.8% was registered in the finance and insurance sector (+6.2% y/y in Q1). Manufacturing went up 2.3% y/y in Q2, reversing a 1.8% y/y decline in Q1. Construction climbed 6.2% y/y, accelerating from a 3.1% y/y rise in Q1. The annual contraction in agriculture deepened to 2.1% from 0.4%.

The breakdown across expenditure components shows that the deceleration of GDP growth was driven by gross capital formation, which contracted 7.6% y/y in Q2 after rising 1.3% y/y in Q1. On the other hand, final consumption grew 2.7%, speeding from a 1.9% y/y rise in Q1, driven by increased government spending.

We estimate that net exports had a positive contribution to real GDP growth in Q2. Exports growth decelerated to 7.4% y/y from 9.4% y/y in Q1 and imports growth slowed to 1.6% from 4.7%.

In nominal terms, Q2 GDP amounted to MKD139.9bn (€2.3bn).

GDP, % y/y real
	Q1'14	Q2'14	Q3'14	Q4'14	2014	Q1'15	Q2'15
Gross Domestic Product	3.3	4.7	4.3	2.7	3.8	3.2	2.6
Final consumption	-0.4	3.1	1.0	2.7	1.6	1.9	2.7
- Households	-0.1	3.8	2.5	2.9	2.3	2.2	2.0
- General government	-1.7	0.0	-5.2	1.9	-1.2	0.9	5.8
Gross capital formation	31.0	8.9	19.1	1.8	13.5	1.3	-7.6
Exports	14.2	15.9	15.2	22.4	17.0	9.4	7.4
Imports	14.8	11.5	14.3	17.4	14.5	4.7	1.6
Source: Statistics office

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