11th April 2019 – We expect for FDIs to grow to a sustainable level, accounting for more than 5% of GDP in the period following the NATO accession. It is twice the average growth rate as regards FDIs in the Republic of North Macedonia in the past five years. This will mean higher employment, better paid jobs and higher living standard in our country, Minister of Finance, Dragan Tevdovski, said in his address at the renowned “Bush School of Government and Public Service” at Texas A&M University, talking about the progress the country has made and the effects therefrom.
NATO membership has had an enormous influence in the other countries in the region. If one compares the period before and after the accession to NATO, foreign direct investments, as a percentage of GDP, doubled in some countries, while they even experienced a three-fold growth in others. I do not see why North Macedonia would be an exception. If average growth rate of FDIs, as a percentage of GDP, was relatively low in the past 5 years, accounting for around 2.5%, it is expected for their growth to reach a sustainable level of more than 5% of GDP in the coming period, Tevdovski said.
He pointed out that as a Minister he had many contacts with foreign investors, both corporate and financial, and the focus during the meetings was always placed on the political stabilization, resolution of the name issue and the progress as regards EU accession and NATO membership.
-From an economic point of view, North Macedonia is stable, western-oriented country. Political stabilization, agreement reached with Greece and progress as regards Euro-Atlantic integration eliminate the political obstacles, ensuring basis for higher investments and economic growth in the period to come. NATO membership guarantees stability and long-term sustainability. Therefore, I am confident that economic benefits will be soon visible – higher foreign, as well as domestic, investments will result in higher export, higher employment and wages and higher living standard for the citizens, Tevdovski said.
Minister of Finance pointed out that the country has successfully maintained macroeconomic and financial stability, expecting for such stability to be maintained in future as well. He also said that denar was stable, inflation was low and stable, current account deficit was stable, as well as the banking and the financial system, while government debt was among the lowest in the region and Europe. In addition, he pointed out that country’s economy was closely related to EU, whereby 80% of its export was to the EU Member States, with around 80% of the FDIs coming from the EU. Foreign capital, again originating from the EU, is present in three thirds of the banks.
“Bush School of Government and Public Service” is one of the best ranked schools of public administration, international affairs and international policy in the USA. Governors, congressmen, senators, ambassadors and recognized university professors have had their address at the “Bush School of Government and Public Service”. Therefore, this is an excellent opportunity to promote our country, as well as the reforms it implements and the efforts it puts, aimed at Euro-Atlantic integration and economic development.