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WB commends Macedonia's wise economic policies
Tuesday, 05 June 2012
MINA Breaking News
Greece's crisis will affect Macedonia only in case of its further spreading, says Zeljko Bogetic, the World Bank Lead Economist for Western Balkans and author of the South East Europe Regular Economic Report No. 2, presented Tuesday in Skopje.
Macedonian banks are in good shape, being more capable to respond to shocks as they were few years ago, Bogetic said, pointing out that he is encouraged by the traditionally wise Macedonian fiscal leadership and relatively sound financial sector.
"Macedonia's short-term fiscal policy is rather solid and sound. The budget rebalance as response to the worsen reality is a swift and wise move. We are encouraged by the country's progress in improving the investments climate. Macedonia is a pretty positive story in our region, both in terms of macroeconomic management and investment climate. However, it can do much more to further strengthen the fiscal-financial sector and investment climate," Bogetic said.
The economies of Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro and Serbia face a sharp slowdown in growth in 2012 amid heightened uncertainties in the eurozone, the World Bank's report reads.
"After 2.2% growth in 2011, early indications are that Southeast Europe’s six (SEE6) countries are experiencing a significant slowdown to 1.1% growth in 2012," a World Bank statement quoted Bogetic as saying.
Weak economic conditions in the eurozone have exerted a drag on domestic demand, trade, and government revenues in SEE6 countries, it says.
While the drop to 1.0% growth would mark a sharp slowdown, Bogetic also emphasized that the figure could be worse, depending on how the Greek economic crisis is resolved. Importantly, this baseline projection assumes an orderly resolution of the Greek crisis and a containment of the broader contagion. Hence the importance of strengthening fiscal and financial buffers in all countries.
With high levels of public debt and financing pressures, most countries have to adopt significant fiscal consolidation programs, the report reads.
"This is the key short-term policy challenge for countries whose public debt-to-GDP ratio has been increasing rapidly," Bogetic said, emphasizing that "economic policy must strike a balance between the need to improve public finances and reduce macroeconomic vulnerabilities, on the one hand, and strengthen the economic policy environment for investment, growth, and jobs, on the other."
According to the World Bank, the financial sector in SEE6 remains relatively well placed, but risks are elevated, especially given a high risk of a broader contagion from the Greek crisis. The importance of the authorities continuing to take pro-active measures to require banks to build buffers and strengthen the resilience of the sector cannot be overemphasized.
"Growth was weak and largely jobless during the nascent recovery in 2010-11. Poverty reduction gains from the pre-crisis period are being reversed, and the middle class has become more vulnerable, according to both objective and subjective indicators of welfare," the statement said, urging the SEE6 country governments to adopt a more ambitious and urgent structural reform agenda for growth and jobs.
In the longer-term, however, the World Bank believes the SEE6 countries face a historic opportunity to take advantage of the European "convergence train"– a reduction in the long-term per capita income gap with developed, "core" European Union (EU) countries. All earlier entrants into the EU experienced this strong "catch up." The same "convergence train" awaits new EU candidate countries among SEE6, but only with appropriate policies and reforms.
"The SEE6 long-term structural reform agenda must be focused on leveraging greater trade and financial flows and, especially, on reforming labor markets and the public sectors," Jane Armitage, World Bank country director and regional coordinator for Southeast Europe, said.
Tuesday, 05 June 2012
MINA Breaking News
Greece's crisis will affect Macedonia only in case of its further spreading, says Zeljko Bogetic, the World Bank Lead Economist for Western Balkans and author of the South East Europe Regular Economic Report No. 2, presented Tuesday in Skopje.
Macedonian banks are in good shape, being more capable to respond to shocks as they were few years ago, Bogetic said, pointing out that he is encouraged by the traditionally wise Macedonian fiscal leadership and relatively sound financial sector.
"Macedonia's short-term fiscal policy is rather solid and sound. The budget rebalance as response to the worsen reality is a swift and wise move. We are encouraged by the country's progress in improving the investments climate. Macedonia is a pretty positive story in our region, both in terms of macroeconomic management and investment climate. However, it can do much more to further strengthen the fiscal-financial sector and investment climate," Bogetic said.
The economies of Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro and Serbia face a sharp slowdown in growth in 2012 amid heightened uncertainties in the eurozone, the World Bank's report reads.
"After 2.2% growth in 2011, early indications are that Southeast Europe’s six (SEE6) countries are experiencing a significant slowdown to 1.1% growth in 2012," a World Bank statement quoted Bogetic as saying.
Weak economic conditions in the eurozone have exerted a drag on domestic demand, trade, and government revenues in SEE6 countries, it says.
While the drop to 1.0% growth would mark a sharp slowdown, Bogetic also emphasized that the figure could be worse, depending on how the Greek economic crisis is resolved. Importantly, this baseline projection assumes an orderly resolution of the Greek crisis and a containment of the broader contagion. Hence the importance of strengthening fiscal and financial buffers in all countries.
With high levels of public debt and financing pressures, most countries have to adopt significant fiscal consolidation programs, the report reads.
"This is the key short-term policy challenge for countries whose public debt-to-GDP ratio has been increasing rapidly," Bogetic said, emphasizing that "economic policy must strike a balance between the need to improve public finances and reduce macroeconomic vulnerabilities, on the one hand, and strengthen the economic policy environment for investment, growth, and jobs, on the other."
According to the World Bank, the financial sector in SEE6 remains relatively well placed, but risks are elevated, especially given a high risk of a broader contagion from the Greek crisis. The importance of the authorities continuing to take pro-active measures to require banks to build buffers and strengthen the resilience of the sector cannot be overemphasized.
"Growth was weak and largely jobless during the nascent recovery in 2010-11. Poverty reduction gains from the pre-crisis period are being reversed, and the middle class has become more vulnerable, according to both objective and subjective indicators of welfare," the statement said, urging the SEE6 country governments to adopt a more ambitious and urgent structural reform agenda for growth and jobs.
In the longer-term, however, the World Bank believes the SEE6 countries face a historic opportunity to take advantage of the European "convergence train"– a reduction in the long-term per capita income gap with developed, "core" European Union (EU) countries. All earlier entrants into the EU experienced this strong "catch up." The same "convergence train" awaits new EU candidate countries among SEE6, but only with appropriate policies and reforms.
"The SEE6 long-term structural reform agenda must be focused on leveraging greater trade and financial flows and, especially, on reforming labor markets and the public sectors," Jane Armitage, World Bank country director and regional coordinator for Southeast Europe, said.
dä fällt mir ein das ich noch nie ein brief oder ne postkarte aus MK in die schweiz geschickt habe kommt das an überhaupt?
