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              

Related Articles

Hungarian retail investors continue to pile into domestic government bonds

The stock of government bonds held by households rose by HUF154bn (€500mn) September to an all-time high of HUF6.5 trillion, Hungary’s Government Debt Management Agency (AKK) said on October 16. ... more

Ukrainian central bank bans Russian banknotes, coins depicting occupied territories

The National Bank of Ukraine (NBU) has forbidden local banks and the country's financial institutions to perform any cash transactions using the new banknotes and coins issued by the Russian central ... more

Erdogan says he plans talks with lenders on cutting Turkish interest rates

Turkey's President Recep Tayyip Erdogan said on October 13 that he plans to hold talks with both public and private lenders on how to lower interest rates. He did not say, however, when those ... more

Dismiss