Macedonian economy to grow 2 percent in 2013

A latest report by the European Bank for Reconstruction and Development (EBRD) projected that Macedonia's economy would rise by 0.3 percent this year, and by two percent in 2013. EBRD said in its Regional Economic Prospects that Macedonia's economy contracted in the first six months of 2012 on a year-to-year basis, thus only modest growth of 0.3 percent is forecast for this year. "The impact from the adverse external developments is being felt more strongly this year and economic growth has slowed down substantially as a result of the weaker demand for exports, lower FDI and reduced remittance flows," the report said. However, EBRD said Macedonia was generally shielded from the impact of the eurozone crisis in 2011 mainly on account of the country's prudent fiscal policy, absence of major imbalances, and a financial system that is not reliant on significant parent bank capital. The bank also predicted that Macedonia's economy would grow by two percent in 2013, the highest among south-eastern European countries, except for Turkey's 3.7-percent growth. It, however, painted a grim picture for the whole region, saying that economy in these countries will post a significantly lower growth due to the effects of the eurozone crisis.