GDP growth of 4.5%, low and stable inflation rate of around 2% to 3%, reduction of current account deficit by 3% to 6 %, balanced increase of both import and export, as well as gradual increase of investments up to 5 % of GDP. This is only part of the macroeconomic scenario of Macedonia included in 2011- 2013 Pre-Accession Economic Programme (PEP), presented by Vice Prime Minister and Minister of Finance, Zoran Stavreski today.
 
Industry growth by 5% to 8 %, increase in services by 3% to 5% and agriculture by 4%, as well as moderate growth of personal consumption are also part of the projections for the period 2011-2013.
 
In the coming three years, highest growth of 7% is expected in construction, and metal, textile and food industry will also experience better outlook.
 
International reserves will remain at high level, approximately to the present one amounting to EUR 1.7 billion, which, as Stavreski said is quite solid.
 
– Pre-Accession Economic Programme is key strategic document in which the Republic of Macedonia presents to the European Union, the medium-term macroeconomic and fiscal framework, as well as the agenda for structural reforms for the period 2011-2013. At the same time, PEP confirms to the EU that Macedonian Government is committed to maintaining macroeconomic and fiscal stability under the determined Maastricht criteria, with 3% budget deficit and 60% government debt at the most, Stavreski pointed out when presenting the Programme. According to him, by preparing the Programme, Macedonia prepares for gradual integration in the multilateral fiscal surveillance in the Economic and Monetary Union and the 2020 EU Strategy.
 
– Macedonian Government will present to Brussels the data on the budget deficit which amounted to 2.7%, i.e. 2.5% of GDP in 2099 and 2010 respectively, being the second lowest one in Europe. We expect for this to be acknowledged as solid performance. However, we do not stop here. On the medium run, we plan to reduce the budget deficit to average level of below 2%, 2.2% in 2012 and 1.9% in 2013, guarantying maintenance of low level of government debt, being one of the main criteria for sound fiscal policy, Stavreski pointed out.
 
As regards public finance, the quality will be improved. It is planned for capital expenditures to increase from the present 11.9% to 15.4% and for current expenditures to reduce.
 
– We do not plan for total budget expenditures to increase, but to rather reduce from 37% to 34%. We also plan to reduce the current expenditures from 88% to 84%. As regards public debt, there will be moderate increase in relation to capital investments in the field of infrastructure, health, education and energy, by which government debt will not exceed 25%, Minister said.
 
2011-2013 Pre-Accession Economic Programme, despite the macroeconomic trends and the results in the last year, also elaborates in details the envisaged structural reforms, the purpose of which, as Vice Prime Minister and Minister of Finance pointed out, is for Macedonian economy to become fully functional -market economy, more competitive and prepared to face the challenges following its membership in the EU.
 
Emphasis will be put on implementing strategies and programmes for industrial policy, export promotion, cluster associations, energy, investment promotion, using renewable energy sources, improving the legislation on stable and competitive financial sector, as well as reforms in the field of education and labour market, agriculture and public administration.
 
The document, inter alia, also shows that Macedonia was among the more successful countries in Europe last year, as regards dealing with the consequences from the economic crisis. Developments on the labour market are relatively favourable since on one hand, as Minister emphasized, unemployment rate was higher than the one in other countries, however on the other, it did not increase in both crisis years. Unemployment reduction is obvious, which as of the third quarter of 2010 inclusive, amounted to 31.7%. Social stability of the country was preserved.
 
PEP is updated every year for the next three years and it is presented in Brussels. The recent 2011-2013 PEP will be presented in the EU headquarters in May this year by Minister Stavreski and Governor of the National Bank Petar Gosev.
 
Answering to journalists’ questions, Stavreski pointed out that possible early elections will not reflect the realization of the Pre-Accession Economic Programme (MIA).
