Boston, MA -- (ReleaseWire) -- 01/03/2014 -- Stalled progress on Macedonia's EU accession hopes and lingering ethnic tensions remain major challenges to the county's long-term stability. Moreover, we note that a deteriorating demographic picture could pose severe economic challenges and exacerbate ethnic tensions as Macedonian society grows more heterogeneous over the coming decades.
Improving domestic demand conditions will see imports begin to rise, and more emphasis will be placed on private consumption to drive growth.
The recent shift of Macedonian manufactured exports towards Germany has helped to limit the downtrend in goods export growth and has paved the way for improving trade dynamics in the coming years.
Major Forecast Changes
We have revised up our 2013 real GDP growth forecast from 2.0% to 3.0% and now see economic growth slowing to 2.0% in 2014, from our previous forecast of 1.8% growth.
We are now forecasting a narrowing of the current account deficit from 3.7% of GDP in 2012 to 3.1% in 2013, having previously projected a 3.9% shortfall. We forecast a 3.0% of GDP current account deficit in 2014, down from our previous forecast for a 4.1% shortfall.
View Full Report Details and Table of Contents
Key Risks To Outlook
We continue to see scope for a moderation in economic growth in H213, which would challenge our assumption that real GDP growth in Macedonia will come in stronger than we had previously assumed. Nevertheless, we note that the more pertinent risk to our outlook is a more abrupt decline in fixed investment growth, which at a time of weak final consumption could lead to a more sudden adjustment in headline growth than the drop from 3.0% to 2.0% that we currently forecast in 2014.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Country Reports research reports at Fast Market Research
You may also be interested in these related reports:
- Chile Business Forecast Report Q1 2014
- Spain Business Forecast Report Q1 2014
- Hungary Business Forecast Report Q1 2014
- Russia Business Forecast Report Q1 2014
- Mexico Business Forecast Report Q1 2014
- Brazil Business Forecast Report Q1 2014
- Lithuania Business Forecast Report Q1 2014
- Australia Business Forecast Report Q1 2014
- Vietnam Business Forecast Report Q1 2014
- Kuwait Business Forecast Report Q1 2014