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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