The political crisis is having an impact on the economy

The political crisis is having an impact on the economy

Skopje, 28 October 2015/Independent Balkan News Agency

By Naser Pajaziti

Political crisis in FYR Macedonia is having an impact on the economy, mainly on foreign investments, tourism but also in other domains of finance and economy.

This situation has had an impact on investors and businesses which are feeling the shortages in cashflow as a result of the fall of economic activity.

Governor of the Central Bank, Dimitar Bogov said that the political crisis in FYROM has its effects in the economic and financial domain. According to him, in one or two weeks, this institution will come up with a new projection for the economic growth during this year.

“However, political insecurity is having a negative impact and I hope that this situation will soon be overcome, because economic agents need security and a sustainable work environment. In April, we projected that economic growth was going to be 4,1% this year”, governor Bogov said.

Antoni Peshev of the Macedonian Chamber of Commerce said that the political situation has a negative effect on the economy. According to him, the business community must preserve the level of optimism with the scope of economic growth to continue.

Economy experts believe that if political tensions are soothed, then the economy will see progress.

Professor of economics at the University of Skopje, Zoran Ivanovski says that the economic slowdown as a result of the political crisis is expected to lead to a budget deficit. “I believe that there will not be significant changes as far as economic policies are concerned. I think that we must expect an increase of the budget deficit”, Ivanovski says.

Citizens too believe that this situation is deteriorating their situation. “There’s great unemployment, but even we, who are at work, are experiencing financial problems. While living costs have grown, salaries have remained the same. There’s a fall of purchasing power and this is becoming problematic”, says Nijazi Musliu, the owner of a small business.

The political crisis has also had an impact in the decrease of foreign investments. So far, the government has not come out with accurate figures about the level of foreign investments and the effects of the political crisis on the economy. /ibna/