Post on 24-Aug-2020
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Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
––––––
SHORTSHORTSHORTSHORT----TERMTERMTERMTERM ECONOMICECONOMICECONOMICECONOMIC
TRENDSTRENDSTRENDSTRENDS
MarchMarchMarchMarch, 201, 201, 201, 2019999
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1
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
CONTENTSCONTENTSCONTENTSCONTENTS
Summary ....................................................................................................................................................................................... 2
I. Real Sector
Industrial Production ............................................................................................................................................................... 3
Number of Employees in the Industry ............................................................................................................................ 4
Business Tendencies in Manufacturing ......................................................................................................................... 5
Number of Issued Building Permits and Expected Value of Works ............................................................... 5
Inflation .......................................................................................................................................................................................... 6
Stock Market Prices ................................................................................................................................................................. 7
2. Foreign Trade
Export ............................................................................................................................................................................................... 8
Import .............................................................................................................................................................................................. 9
Trade Balance ............................................................................................................................................................................. 10
Currency Structure ................................................................................................................................................................. 11
3. Fiscal Sector
Budget revenues according to the economic clasiffication ............................................................................... 11
Revenues by budget users .............................................................................................................................................. …..13
Budget expenditures according to the economic clasiffication ……………………………………..….....……........14
Expenditures by budget users ....................................................................................................................................................15
Budget Balance ....................................................................................................................................................................…..16
4. Social Sector
Number of Newly Employed and Registered Unemployed Persons in EARNM……………………………...17
Wages ........................................................................................................................................................................................... 18
Pensions ........................................................................................................................................................................................ 18
5. Monetary Sector
Primary Money .......................................................................................................................................................................... 19
Deposit Potential .................................................................................................................................................................... 20
Bank Credits ............................................................................................................................................................................... 21
Interest Rates of Deposit Banks ...................................................................................................................................... 21
Capital Market .......................................................................................................................................................................... 22
Reserve assets .......................................................................................................................................................................... 22
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2
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
SUMMARYSUMMARYSUMMARYSUMMARY
OF THE MOST IMPORTANT SHORT-TERM ECONOMIC TRENDS
March 2019
� Industrial production surged by 7.5% in March 2019 compared to the same month last year;
� Consumer prices in March 2019 increased by 1.4% compared to March 2018, following the
1.1% increase in February 2019;
� Export in the period January - March 2019 surged by 16.8%, while import grew by 11.5%,
resulting in decrease of the trade deficit by 3.1% compared to the same period in 2018;
� In the period January–March 2019, total budget revenues reached an amount of Denar
46,076 million, i.e. 6.6% of GDP, showing higher performance by 6.2% in relation to the
same period in 2018;
� Total budget expenditures amounted to Denar 49,270 million in the period January -
March 2019, i.e. they accounted for 7.1% of GDP, being higher by 6.0% compared to the same
period in 2018;
� Total credits of banks in March 2019 grew by 9.0% compared to March 2018, while total
deposit potential of banks surged by 11.1%.
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3
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
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5
10
15
20
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2018
IV V VI VII VIII IX X XI XII I II III
2019
Chart 1.1: Industrial production
(growth rates in %)
Industrial production Manufacturing
Source: SSO.
-4
-2
0
2
4
6
8
10
12
14
III
2018
IV V VI VII VIII IX X XI XII I II III
2019
Chart 1.2: Structure of industrial production growth
(contributions in p.p.)
Mining and quarrying Manufacturing
Electricity supply Industrial production
Source: SSO.
1. 1. 1. 1. REAL SECTORREAL SECTORREAL SECTORREAL SECTOR
Industrial ProductionIndustrial ProductionIndustrial ProductionIndustrial Production
Industrial production surged by
7.5% in March 2019 compared to the
same month last year. Main driving
force of growth was
Manufacturing, experiencing 8.8%
growth (contribution of 6.8 p.p.),
while growth was also registered in
Mining and quarrying of 10.8%
(contribution of 1.2 p.p.), while
Electricity, gas, steam and air-
conditioning supply sector dropped
by 4.6% (contribution of -0.6 p.p.).
In March 2019, growth in production was registered at 16 out of total of 27 industrial
branches, comprising 59.5% in the total production structure. As regards higher value-
added branches, Manufacture of machinery and equipment contributed the most
thereto, accounting for 41.2% in March 2019 and a contribution of 4.0 p.p., whereby
Manufacture of electrical equipment experienced a growth of 19,7%, which contribution
to total production accounted for 0.8 p.p.. In March 2019, drop of 2.5% was registered at
Manufacture of food products, which negative contribution to total production
accounted for 0.2 p.p.. Especially high growth in March 2019 was recorded at repair and
installation of machinery and equipment by 114.1%, however, due to the insignificant
share in this sector, its contribution accounts for only 0.6 p.p.. Manufacture of
beverages continues to register two-digit growth, accounting for 34.5% in March 2019,
with contribution of 4.0 p.p., being a sector with the second highest contribution.
In line with the data by target
groups, growth was seen at the
groups: Capital goods by 20.2%
(contribution of 4.5 p.p.) and
Intermediary goods, except energy
dropping by 13.3% (contribution of
3.9 p.p.). On the other hand, drop of
1.2% was seen at Non-durable
consumer goods industry
(contribution of -0.4 p.p.), Durable
Consumer goods industry decreased
by 11.1% (contribution of -0.3% p.p.)
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4
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
4.0
1.41.0 0.8 0.6
2.3
1.00.5 0.7
0.3
0
1
2
3
4
5
1 2 3 4 5
Chart 1.3а: Branches with positive contribution to growth
(growth rates in %)
Contribution to monthly growth Contribution to cumulative growth
1 - Manufacture of machinery and equipment
2 - Manufacture of beverages
3 - Manufacture of other non-metallic mineral products
4 - Manufacture of electrical equipment
5 - Repair and installation of machinery and equipment
Source: SSO.
-1.1-0.7 -0.6 -0.4 -0.3
-0.7-1.1
1.9
-0.4-0.1
-2
-1
0
1
2
3
1 2 3 4 5
Chart 1.3b: Branches with negative contribution to growth
(growth rates in %)
Contribution to monthly growth Contribution to cumulative growth
1 - Manufacture of wearing apparel
2 - Manufacture of fabricated metal products
3 - Electricity supply, gas, steam and air conditioning
4 - Other manufacturing
5 - Manufacture of tobacco products
Source: SSO.
and Energy by 0.8% (contribution of -0.1. p.p.).
As per the cumulative data,
production in the first three
months in 2019, experienced 8.8%
growth, which was fully a result of
the increased production in
Manufacturing by 6.9%
(contribution of 5.3 p.p.), and to a
lesser extent a result of the growth
in Electricity, gas, steam and air-
conditioning supply sector by 15.9%
(contribution of 1.9 p.p.) and Mining
and quarrying by 4.1% (contribution
of 0.4 p.p.).
Data from the analysis by branches
shows that growth was registered
at 14 out of 27 branches, accounting
for 69.3% of total industrial
production structure. As regards
branches having significant share
in the structure, growth was
registered at Manufacture of
machinery and equipment of 23.8%
and contribution of 2.3 p.p., Electricity, energy, gas, steam and air conditioning supply
of 15.9% and contribution of 1.9 p.p., Manufacture of motor vehicles of 13.9% and
contribution of 1.4 p.p., as well as Food industry of 2.0% and contribution of 0.2 p.p..
With respect to target groups, in the period January - March 2019, growth was mainly a
result of increased production at all groups, as follows: Capital goods growing by 12.3%
(contribution of 2.7 p.p.), Intermediary goods, except energy surging by 9.0%
(contribution of 2.6 p.p.) Energy picking up by 16.2% (contribution of 2.3 p.p.), Non-
durable consumer goods industry increasing by 0.3% (contribution of 0.1 p.p.) and
Durable consumer goods industry by 2.0% (contribution of 0.1 p.p.).
Number of Employees in the IndustryNumber of Employees in the IndustryNumber of Employees in the IndustryNumber of Employees in the Industry
In March 2019, number of employees in the industry decreased by 0.8%. Drop was due to
the reduction in the number of employees in the following sectors: Manufacturing
industry by 0.9% and Electricity, gas, steam and air-conditioning supply sector by 0.4%,
while Mining and quarrying sector surged by 0.4%.
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5
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
-10
-8
-6
-4
-2
0
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4
6
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Chart 1.4: Employment and productivity in industry
(growth rates in %)
Employment Productivity
Source: SSO; calculatations by MF.Source: SSO; calculatations by MF.
Data on the number of employees
in industry by target groups in
March 2019, compared to the same
period last year, showed increase in
the number of employees at the
Capital goods by 9.3% and
Intermediary goods, except energy,
by 0.2%, while drop was seen at
Non-durable consumer goods
industry by 4.7%, Durable consumer
goods industry by 4.6% and Energy
by 0.8%.
On cumulative basis, in the period January - March 2019, number of employees
increased by 0.4% mainly as a result of the growth in the Manufacturing and Mining
and quarrying sector by 0.4% each, while number of employees in Electricity, gas, steam
and air-conditioning supply sector remained unchanged.
According to the data on target groups, in the first three months in 2019, increase was
registered at Capital goods – 13.6% and Intermediary goods, except energy - 0.9%, while
decline was observed at Non-durable consumer goods industry – 3.9%, Durable
consumer goods industry - 3.6% and Energy - 0.5%.
Business Tendencies in ManufacturingBusiness Tendencies in ManufacturingBusiness Tendencies in ManufacturingBusiness Tendencies in Manufacturing
Economic situation of business entities in March 2019 was more favourable compared
to February 2019, as well as in relation to the same month in 2018.
Average utilization of capacities of business entities in March accounted for 69.0%,
being an increase compared to the previous month, when it accounted for 68.8%. On
annual basis, utilization of the capacities was higher by 2.0 p.p..
Shortage of skilled labour with 25.6%, insufficient foreign demand with 16.1%,
insufficient domestic demand with 14.6%, uncertain economic environment with 10.7%,
financial problems with 7.8%, shortage of raw materials with 6.1% and competitive
import with 6.0% limited the most the production volume in March.
As regards the volume of production orders in March 2019, it was less favourable
compared to February 2019, it is expected for the production volume in the next three
months to be more favourable in relation to the previous month, while stocks of
finished products were decreased on monthly basis.
Number of Issued Building Permits and Expected Value of WorksNumber of Issued Building Permits and Expected Value of WorksNumber of Issued Building Permits and Expected Value of WorksNumber of Issued Building Permits and Expected Value of Works
In March 2019, 277 building permits were issued, increasing by 31.3% compared to March
2018. Compared to the previous month, number of issued building permits surged by
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Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
0
1500
3000
4500
6000
7500
9000
0
100
200
300
400
500
600
III
2018
IV V VI VII VIII IX X XI XII I II III
2019
Chart 1.5: Building permits and value of works
(number in units; value in million denars)
Number of issued building permits (LHS)
Expected value of works (RHS)
Source: SSO.
Vardar
6.5%
East
14.4%
South - West
15.9%
South - East
6.1%
Pelagonija
6.5%
Polog
17.3%
North - East
15.9%
Skopje
17.3%
Chart 1.6: Structure of issued building permits by regions
Source: SSO.
81.0%. Expected value of works,
according to the issued building
permits in March 2019, increased by
83.2% on annual basis. Compared to
the previous month, value of works
experienced almost three-fold
increase.
Analyzed by types of constructions,
out of the total number of issued
building permits, 106 (or 38.3%)
were intended for buildings, 35 (or
12.6%) for civil engineering
structures and 136 (or 49.1%) for
reconstruction.
Analyzed by types of investors, out
of total 277 issued building permits,
individuals were investors in 125
facilities (or 45.1%), while business
entities were investors in 152
facilities (or 54.9%).
In March 2018, construction of 276
flats was envisaged, with total usable area of 28,520 m2. Number of envisaged flats for
construction experienced two-fold increase on monthly basis, decreasing by 19.3%
compared to March 2018.
InflatiInflatiInflatiInflationononon
Consumer prices in March 2019 increased by 1.4% compared to March 2018, following
the 1.1% increase in February 2019. Average inflation rate in the period January – March
2019 amounted to 1.2%.
Prices in the Food and non-alcoholic beverages category, having the highest share in
the CPI index, experienced 2.9% increase in March on annual basis. The highest annual
increase of prices in March 2019 was observed at the category Alcoholic beverages,
tobacco and narcotics by 8.6%, followed by the increase in prices at the following
categories: Health by 2.9%, Recreation and culture by 2.2%, Restaurants and hotels by
1.9% and Furnishings, household equipment and routine maintenance of the house by
1.2%.
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7
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
-0.5
0.0
0.5
1.0
1.5
2.0
III
2018
IV V VI VII VIII IX X XI XII I II III
2019
Chart 1.8: Contributions to the annual inflation rate
(in p.p.)
Food and non-alcoholic beverages Transport
Alcoholic beverages, tobacco and narcotics Other
Total CPI
Source:SSO.
-24
-18
-12
-6
0
6
12
55
60
65
70
75
80
85
III
2018
IV V VI VII VIII IX X XI XII I II III
2019
Chart 1.9: Changes in crude oil (Brent) price
(price in $/bbl; growth rate in %)
Monthly growth rate (RHS) Price (LHS)
Source: World Bank; calculations of MoF.
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
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IV V VI VII VIII IX X XI XII I II III
2019
Chart 1.7: Inflation rate
(growth rates in %)
annual rate monthly rate
Source: SSO.
Annual drop of prices in March 2019
was recorded in the following
categories: Transport by 2.8%,
Clothing and footwear by 1.7%,
Communications by 1.3%, Education
by 0.5% and Housing, water,
electricity, gas and other fuels and
Miscellaneous goods and services
by 0.1% each.
Consumer prices in May 2019
increased by 0.4% compared to the
previous month. Thereby, monthly
increase of prices was recorded at
the following categories: Alcoholic
beverages, tobacco and narcotics by
3.6%, Food and non-alcoholic
beverages by 0.7%, Furnishings,
household equipment and routine
maintenance of the house by 0.5%
and Recreation and Culture by 0.4%.
Thereby, monthly decline of prices
was recorded in the following
categories: Clothing and footwear by 1.1%, Transport by 0.3% and Miscellaneous goods
and services by 0.2%. While prices in categories Housing. water, electricity, gas and
other fuels, Health, Communications, Education and Restaurants and hotels remained
unchanged.
Retail prices in March 2018 were higher by 0.4% compared to the same month last year,
while on monthly basis, they remained unchanged.
Stock Market PricesStock Market PricesStock Market PricesStock Market Prices
In March 2018, crude oil price (Brent)
on the global stock markets grew by
3.6% compared to February 2019,
reaching the price of US$ 66.4 per
barrel. Compared to the same month
in 2018, oil price is almost
unchanged.
As regards metal products, nickel, as
an important export product, was
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8
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
1000
1500
2000
2500
3000
3500
4000
10000
11000
12000
13000
14000
15000
16000
III
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2019
Chart 1.10: Metal stock prices
(prices in $/mt)
Nickel price (LHS) Lead price (RHS) Zink price (LHS)
Source: World Bank.
0
300
600
900
1200
1500
1800
2100
Export Import
Chart 2.1: Foreign trade
(in million EUR)
I-III 2018 I-III 2019 I-III 2018 I-III 2019
Source: SSO.
traded at an average price of US$
13,026 for a metric ton ($/mt) in
March 2019, being a price increase
by 2.7% on monthly basis. Compared
to March 2018, nickel price was
lower by 2.7%. In addition to nickel,
price increase in March 2019 was
also recorded at the other base
metals, except for the lead, the price
of which decreased by 0.8%. Hence,
price of zinc grew by 5.3%, price of
copper increased by 2.2%, price of tin was higher by 0.6% and price of aluminum
decreased experienced 0.4% growth. Price of iron ore in March declined by 2.0% on
monthly basis.
As regards precious metals, prices of silver and gold declined by 3.3% and 1.5%
respectively in March 2019, compared to the previous month, while price of platinum
surged by 3.0%.
In March 2019, price of wheat on global stock markets declined by 6.0%, while price of
maize decreased by 1.9% on monthly basis.
2. 2. 2. 2. FOREIGN TRADEFOREIGN TRADEFOREIGN TRADEFOREIGN TRADE
Total foreign trade in the first
three months in 2019 amounted to
EUR 3,517.6 million, increasing by
13.7% compared to the same period
last year.
In the period January-March 2019,
share of trade with the EU (ЕU 28),
as the largest trading partner,
decreased by 1.5 p.p. compared to
the same period last year,
accounting for 71.1%.
ExportExportExportExport
In the period January - March 2019, value of exported goods amounted to EUR 1,529.2
million, surging by 16.8% (EUR 219.7 million) compared to the same period in 2018, while
physical output of export grew by 21.8%.
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9
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
Iron and steel
9.5%
Clothing
7.6%
Chemical materials
and products21.6%
Beverages and
tobacco
2.1%
Oil and oil products
1.2%Metal ore and metal
scrap
3.8%
Other
54.1%
Chart 2.2: Structure of exports according to SITC
Source: SSO.
Period: I-III 2019
5.9
46.3
1.5
17.5 15.912.6
0
10
20
30
40
50
Food
an
d be
vera
ges
Indu
stri
al s
upp
lies
Fuel
an
d lu
bric
ants
-
ener
gy
Inve
stm
ents
exc
ept
tran
spor
t eq
uip
men
t
Tra
nsp
ort
equ
ipm
ent
Con
sum
ptio
n g
oods
Chart 2.3: Structure of exports by economic purpose
(share in %)
Food and beverages Industrial supplies
Fuel and lubricants - energy Investments except transport equipment
Transport equipment Consumption goods
Source: SSO and MoF calculations
Period: I-III 2019
8.3
53.2
10.413.2
5.89.1
0
10
20
30
40
50
60
Food and
beverages
Industrial supplies Fuel and lubricants
- energy
Investments except
transport
equipment
Transport
equipment
Consumption goods
Chart 2.4: Structure of imports by economic purpose
(share in %)
Food and beverages Industrial supplies
Fuel and lubricants - energy Investments except transport equipment
Transport equipment Consumption goods
Source: SSO and MoF calculations.
Period: I-III 2019
Value of exported goods amounted
to EUR 584.0 million in March 2019,
surging by 37.0% (EUR 157.8 million)
compared to the same month of the
previous year, while physical output
of export increased by 35.8%.
Analyzed on monthly basis, in
March 2019, export grew by 10.2%
(EUR 54.2 million), compared to the
previous month and, should export
be seasonally adjusted, it registered
monthly growth of 2.7%.
Main groups of products (according
to SITC) being most exported in the
period January - March 2019 were
the following: chemical materials
and products, iron and steel,
clothing, metal ore and metal scrap,
beverages and tobacco and oil and
oil products. These six groups of
products comprised 45.9% of the
total export of the country.
Analyzed according to economic groups of countries, in the period January - March
2019, compared to the same period in 2018, export grew at the following groups: EU 28,
EFTA, Organization of Petroleum Exporting Counties, Western Balkan Countries,
North American Free Trade Agreement, Asia-Pacific Economic Cooperation and
Commonwealth of Independent States. Export to EU 28 grew by 15.4% annually, while
export to Western Balkan countries increased by 14.9%, whereby export of goods to EU
28 and the Western Balkan
countries accounted for 84.0% and
9.8% respectively in the total export
from the Republic of North
Macedonia.
ImportImportImportImport
In the period January - March 2019,
value of imported goods amounted
to EUR 1,988.4 million, surging by
11.5% (EUR 204.8 million) compared
to the same period in 2018, while
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10
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
-300
0
300
600
900
1200
1500
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IV V VI VII VIII IX X XI XII I II III
2019
Chart 2.5: Foreign trade
(in million EUR)
Export Import Balance Total
Source: SSO.
physical output of import grew by 22.9%.
In March 2019, import value amounted to EUR 738.9 million, surging by 14.6% (EUR 94.1
million) compared to the same month in 2018, while imported quantities of goods grew
by 17.4%.
Analyzed on monthly basis, in March 2019, import grew by 8.8% (EUR 59.5 million)
compared to the previous month, and, should import be seasonally adjusted, it
registered monthly drop of 2.3%.
Table 2.1. Review of export and import of selected groups of products
I - III - 2018 I - III - 2019 Balance % rate I - III - 2018 I - III - 2019 Balance % rate
000 Т 4,5 10,0 5,4 120,7 .000 Т 6,7 8,6 1,9 28,6
EUR mil. 279,0 330,7 51,7 18,5 EUR mil. 49,7 54,3 4,6 9,2
$ mil. 343,0 375,5 32,5 9,5 $ mil. 61,2 61,6 0,4 0,7
*)Previous data *)Previous data
I - III - 2018 I - III - 2019 Balance % rate I - III - 2018 I - III - 2019 Balance % rate
000 Т 178,5 202,9 24,4 13,7 .000 Т 241,1 245,6 4,6 1,9
EUR mil. 106,4 145,5 39,1 36,8 EUR mil. 128,5 125,0 -3,5 -2,7
$ mil. 131,1 165,0 34,0 25,9 $ mil. 158,3 141,7 -16,5 -10,4
*)Previous data *)Previous data
I - III - 2018 I - III - 2019 Balance % rate I - III - 2018 I - III - 2019 Balance % rate
000 Т 14,8 19,7 4,9 33,3 .000 Т 14,7 15,2 0,5 3,7
EUR mil. 190,8 241,4 50,6 26,5 EUR mil. 165,7 178,0 12,3 7,4
$ mil. 234,9 273,9 39,0 16,6 $ mil. 203,9 202,1 -1,8 -0,9
*)Previous data *)Previous data
Export of electrical machines and spare parts*) Import of electrical machines and spare parts*)
Export of chemical products*) Import of chemical products*)
Export of iron and steel*) Import of iron and steel*)
Trade BalanceTrade BalanceTrade BalanceTrade Balance
In the period January - March 2019,
trade deficit decreased by 3.1%, i.e.
by EUR 14.9 million, compared to
the same period last year.
In March 2019, trade deficit
decreased by 29.1% or EUR 63.7
million compared to March 2018.
If we analyze the balance of export
and import of goods by economic
purpose, deficit decrease is a result
of the narrowing of the negative
balance in the trade of investment goods without transport equipment and food and
beverages, as well as widening of the positive balance in the trade of transport
equipment and consumer goods. On the other hand, widening of the negative balance in
the trade of industrial supplies and fuels and lubricants, contributed to the deficit
increase.
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11
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
0 2000 4000 6000 8000 10000 12000 14000 16000
Non-tax revenues
Social contributions
Custom duties
Excises
VAT
Profit tax
Personal income tax
Chart 3.1: Revenues by category
(in million denars)
March 2018 March 2019
Source: MoF.
In the period January - March 2019, 87.5% of the trade deficit of the country was realized
in the trade with Great Britain, Greece and China, followed by: Serbia, South Africa,
Turkey, Italy, Ukraine, Poland, etc. Surplus was realized in the trade with Germany,
Kosovo, Belgium, Spain and Hungary.
Currency StructureCurrency StructureCurrency StructureCurrency Structure
Observed by currency structure, 85.6% of the trade in the period January - March 2019
was realized in euros and, compared to the same period in 2018, it decreased by 2.5 p.p..
On export and import side, euro accounted for 92.9% and 80.0%, respectively, whereby
share of the euro in export was lower by 1.3 p.p., while share of the euro in import
decreased by 3.7 p.p. compared to the period January - March 2018.
import
currency .000 Timport in
currency
average Denar
exch. Rate in
relation to
currencies
import in Denarstructure in
%.000 T
import in
currency
average
Denar exch.
Rate in
relation to
currencies
import in Denar structure in %
EUR 1.041,2 1.492.817.716 61,5580 91.894.872.948 83,7 1.060,5 1.591.287.000 61,5252 97.904.250.903 80,0 98.469.284 6,6
USD 262,5 336.337.652 50,0967 16.849.406.450 15,3 543,2 429.102.118 54,1702 23.244.547.554 19,0 92.764.466 27,6
GBP 1,6 7.374.412 69,6764 513.822.447 0,5 1,1 5.498.481 70,4783 387.523.560 0,3 -1.875.931 -25,4
EUR+USD+
GBP1.305,3 109.258.101.845 99,0 1.604,8 121.536.322.017 99,3
tot. import 1.309,2 109.801.321.764 100,0 1.609,1 122.337.628.744 100,0 11,4
Source: SSO and NBRNM
Table 2.2 Foreign trade of the Republic of North Macedonia (by currency); calculations: MoF
I - III - 2018 I - III - 2019
absolute
change in
currency value
relative
change in
currency
value (in %)
3. 3. 3. 3. FISCAL SECTORFISCAL SECTORFISCAL SECTORFISCAL SECTOR
Budget Revenues According to the Economic ClassificationBudget Revenues According to the Economic ClassificationBudget Revenues According to the Economic ClassificationBudget Revenues According to the Economic Classification
In the period January–March 2019,
total budget revenues reached an
amount of Denar 46,076 million, i.e.
6.6% of GDP, showing higher
performance by 6.2% in relation to
the same period in 2018.
Tax revenues in this period were
collected in the amount of Denar
26,272 million, being higher by 2.9%
in relation to the same period last
year.
Revenues on the basis of value added tax were collected in the amount of Denar 12,123
million, increasing by 5.2% in relation to last year, whereby share of VAT in total tax
revenues was dominant, accounting for 46.1%. Thereby, VAT collection amounted to
Denar 17,996 million on gross basis, out of which Denar 5,872 million was refunded to
taxpayers (gross collection was higher by 4.7%, while VAT refund was higher by 3.9%
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12
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
compared to the same period in 2018). As for VAT structure, collection of VAT when
importing accounted for the most, increasing by 3.6%, while VAT revenues collected on
the basis of sales in the country picked up by 7.4%.
Revenues on the basis of excises were collected in the amount of Denar 5,129 million
(participating with 19.5% in the tax revenues), declining by 9.5% compared to the same
period in 2018. Hence, revenues collected on the basis of these two indirect taxes
amounted to Denar 17,252 million, i.e. 65.7% of the total tax revenues in this period.
PIT revenues were collected in the amount of Denar 4,053 million, increasing by 12.1%
on annual basis, whereby revenues on the basis of tax on salaries and other personal
earnings accounted for 64.1% of the personal income tax, revenues on the basis of
games of chance and award games accounted for 9.2%, revenues on the basis of
contractual agreement accounted for 6.3%, revenues on the basis of property and
property rights accounted for 5.5% and capital revenues accounted for 4.9%. Profit tax
revenues in the first three months amounted to Denar 3,431 million, increasing by 7.9%
compared to the same period in the previous year, being mainly a result of tax collected
on the basis of monthly advance payments (13.2% increase), withholding tax for foreign
legal entities (6.2% increase), while additional payments on the basis of tax balances
decreased by 5.5%.
Customs revenues were collected in the amount of Denar 1,408, being unchanged
compared to the same period last year. Collection of revenues on the basis of other
taxes, amounting to Denar 128 million, declined by 3.0%.
Social contributions were collected in the amount of Denar 14,061 million, being higher
by 7.7% compared to the same period in 2018, whereby collection of pension and
disability insurance contributions grew by 7.7%, collection of employment contributions
increased by 6.3% and health insurance contributions experienced 7.8% growth.
Non-tax revenues were collected in the amount of Denar 4,324 million and, in relation
to the first three months in 2018, they were higher by 35.3% (these revenues include
revenues on the basis of profit realized by the public institutions, revenues collected on
the basis of administrative fees and fines, concessions, etc.).
Capital revenues realized on the basis of sale of construction land, flats and dividends
reached Denar 218 million, decreasing by 52.2% compared to last year.
Revenues collected on the basis of foreign donations from international and bilateral
cooperation amounted to Denar 888 million, increasing by 12.7% compared to the same
period last year.
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13
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
Tax revenues80.6
Non-tax revenues4.2
Capital revenues0.7
Transfers and donations
1.4
Domestic borrowing13.1 Foreign borrowing
0.0Revenues from
repayment of loans
0.1
Chart 3.2: Structure of revenues of Ministry of finance - state
functions (in %)
Source: MoF.
Period: I-III 2019
Revenues by Budget UsersRevenues by Budget UsersRevenues by Budget UsersRevenues by Budget Users
Budget revenues, i.e. inflows to the Central Budget, are generated mainly through the
Ministry of Finance - Functions of
the State1, which amounted to
Denar 32,261 million in the period
January - March 2019, i.e. 92.9% of
the revenues of all budget users,
accounting for 20.2% of the annual
projections of this budget user.
Within the Ministry of Finance -
Functions of the State, tax revenues
accounted for the most – 80.6% of
total revenues and inflows to this
budget user, whereby their
collection reached 21.9% of the annual projections in the period January - March 2019.
Inflows on the basis of domestic borrowing in this period amounted to Denar 4,217
billion, accounting for 13.1% of the total amount of this budget user.
Ministry of Education and Science collected revenues in the amount of Denar 898
million, i.e. 2.6% of the revenues and inflows of all budget users, most of which (87.0%)
were non-tax revenues, collected mainly on the basis of fees and charges.
Ministry of Finance, as budget user, collected revenues in the amount of Denar 310
million, or 0.9% of the revenues and inflows of all budget users. Inflows on the basis of
foreign borrowing amounted to Denar 164 million, accounting for 52.8% of the total
revenues of this budget user.
The remaining budget users collectively generated revenues, accounting for 3.7% of
total revenues and inflows. Detailed data on each budget user are presented in the
statistical annex attached at the following link (http://finance.gov.mk/mk/node/693).
As regards budget funds, in the period January - March 2019, Pension and Disability
Insurance Fund of North Macedonia, collected revenues in the amount of Denar 18,392
million, accounting for 25.4% of the Fund’s annual projections.
1 As regards the Organizational Code "Functions of the State”, the following activities are included: timely servicing of
liabilities (interest and principal repayment) of the state on the basis of domestic and foreign borrowing; regular
payment of operating costs of the state upon prior submitted payment documentation; share in the capital of
international financial institutions; payment of VAT on the basis of capital investments funded by donations, financing
projects by individual IPA components (national co-financing and IPA funds from the EU). In addition, this
organizational code, pursuant to the Law on Budgets of the Republic of North Macedonia and the Law on Budget
Execution, envisages funds allocated for covering the damages caused by natural disasters and funds for financing
unforeseen costs in the course of the fiscal year.
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14
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
0 5000 10000 15000 20000 25000 30000
Capital
expenditures
Interest
Other
transfers
Social
transfers
Goods and
services
Wages and
allowances
Chart 3.3: Expenditures by category
(in million denars)
March 2018 March 2019
Source: MoF.
Budget Expenditures According tBudget Expenditures According tBudget Expenditures According tBudget Expenditures According to the Economic Classificationo the Economic Classificationo the Economic Classificationo the Economic Classification
Total budget expenditures amounted to Denar 49,270 million in the period January -
March 2019, i.e. they accounted for 7.1% of GDP, being higher by 6.0% compared to the
same period in 2018.
With respect to the structure of
total executed expenditures,
current expenditures, amounting to
Denar 47,656 million, accounted for
96.7% and they increased by 6.6% on
annual basis.
Expenditures related to wages and
allowances were executed in the
amount of Denar 6,751 million,
increasing by 3.2% in relation to the
previous year, accounting for 13.7% of the total budget expenditures.
Expenditures related to goods and services amounted to Denar 3,467 million, increasing
by 6.9% compared to the same period in 2018.
Funds allocated for transfers amounting to Denar 35,500 million accounted for the
most in the current expenditure items. Such expenditures grew by 6.0% compared to
January- march 2018, participating with 72.1% in the total expenditures.
Funds allocated for social transfers amounted to Denar 25,983 million, increasing by
8.9% and accounting for 52.7% of the total expenditures. Transfers towards the Pension
and Disability Insurance Fund, accounting for the most of the social transfers,
amounted to Denar 16,076 million, increasing by 8.9% compared to 2018 and accounting
for 32.6% of the total expenditures. Category “other transfers”, which includes transfers
to local government units, accounted for 18.6% of the total expenditures, i.e. they
decreased by 1.2%, amounting to Denar 9,144 million. Block grants to local government
units, amounting to Denar 4,138 million, grew by 5.0% compared to the previous year.
Expenditures related to subsidies and transfers amounted to Denar 4,433 million, being
lower by 6.8% compared to last year.
Interest-related expenditures were executed in the amount of Denar 1,938 million,
being by 36.7% more compared to the same period in 2018. Costs related to interest on
the basis of domestic borrowing decreased by 18.3%, while the ones on the basis of
foreign borrowing grew by 135.5%. During the analyzed period, funds for capital
expenditures were executed in the amount of Denar 1,614 million, participating with
3.3% in the total expenditures. i.e. decreasing by 10.0% compared to the same period in
2018.
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15
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
Ministry of labour and social policy
28.4
Ministry of finance -state functions
20.7
Ministry of education and science
13.5
Ministry of interior7.6
AFSARD7.2
Ministry of health 3.3
Ministry of defence 4.2
Ministry of transport and communications
1.1
Other14.1
Chart 3.4: Structure of expenditures by budget users
(in %)
Source: MoF.
Period: I-III 2019
ExpenditurExpenditurExpenditurExpenditures by Budget Userses by Budget Userses by Budget Userses by Budget Users
Review of budget expenditures for the largest budget users is shown below, the total
annual budget of which accounts for 81.0% of the total budget of all budget users.
In the period January - March 2019, Ministry of Labour and Social Policy executed funds
in the amount of Denar 10,837 million or 24.3% of its total budget for the current year.
Thereby, most of the expenditures (73.5%) in this period were allocated for current
transfers to extra-budgetary funds, for which Denar 7,963 million was spent or 26.3% of
the funds allocated for 2019. The second highest expenditure category was social
benefits, participating with 18.1% in the total expenditures. As for this purpose, 19.1%
(Denar 1,958 million) of the expenditures projected for 2019 were executed.
In the first three months of 2019,
Denar 7,901 million was spent
through the organizational code
Ministry of Finance – Functions of
the State2, accounting for 23.6% of
its annual budget. Repayment of
principal accounted for most of the
expenditures or 56.9%, Denar 4.497
million being spent therefore, i.e.
27.5% of the funds projected for this
purpose in 2019. As regards
expenditures related to interest
payments, they accounted for 24.5% of the total expenditures, Denar 1,938 million being
spent therefore or accounting for 21.1% of the projected interest payments.
In the period January - March 2019, Ministry of Education and Science executed budget
funds in the amount of Denar 5,164 million, i.e. 19.8% of its total 2019 budget. Current
transfers to LGUs accounted for the most of the expenditures (69.1%), Denar 3,569
million being spent therefore or 24.8% of total projected funds. Wages and allowances
were the second highest expenditure category, participating with 16.5%, Denar 853
million being spent therefore, i.e. 23.2% of the total funds projected for the current year.
In the period January - March 2019, Ministry of Internal Affairs executed expenditures
in the total amount of Denar 2,903 million, accounting for 26.5% of its 2019 budget.
2 As regards the Organizational Code "Functions of the State”, the following activities are included: timely servicing of
liabilities (interest and principal repayment) of the state on the basis of domestic and foreign borrowing; regular
payment of operating costs of the state upon prior submitted payment documentation; share in the capital of
international financial institutions; payment of VAT on the basis of capital investments funded by donations, financing
projects by individual IPA components (national co-financing and IPA funds from the EU). In addition, this
organizational code, pursuant to the Law on Budgets of the Republic of North Macedonia and the Law on Budget
Execution, envisages funds allocated for covering the damages caused by natural disasters and funds for financing
unforeseen costs in the course of the fiscal year.
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16
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
Wages and allowances were the highest expenditure item, participating with 66.8%,
Denar 1,939 million being spent therefore, or accounting for 25.2% of the projected ones.
The second highest expenditure item was goods and services, participating with 22.9%,
funds in the amount of Denar 666 million being spent therefore, or accounting for 33.7%
of the annual projections.
Agency for Financial Support in Agriculture and Rural Development spent funds in the
amount of Denar 2,743 million, accounting for 31.6% of the funds projected for the
current year. As for subsides and transfers, accounting for 97.8% of the total
expenditures, 40.6% of the projected funds were spent therefore.
In the first three months in 2019, Ministry of Defense executed budget funds in the
amount of Denar 1,588 million, i.e. 19.1% of its total 2019 budget. Wages and allowances
accounted for the most with 60.5%, for which Denar 960 million was realized,
accounting for 24.2% of the total funds projected for the current year. Expenditures
related to goods and services accounted for 25.2% of total expenditures, Denar 400
million being spent therefore during the analyzed period, i.e. 20.2% execution of the
total projected funds.
In the period January - March 2019, Ministry of Health executed budget funds in the
amount of Denar 1,276 million, accounting for 19.7% of its total 2019 budget. Current
transfers to extra-budgetary funds accounted for the most of the expenditures with
51.5%, for which Denar 657 million was spent or 22.9% of the funds projected for the
current year. Expenditures related to goods and services were the second highest
expenditure category, accounting for 38.4% of the total expenditures, funds in the
amount of Denar 490 million being executed therefore in the analyzed period, i.e. 21.4%
of total projected ones.
During the analyzed period, Ministry of Transport and Communications executed funds
in the amount of Denar 409 million, i.e. 5.6% of its total budget for the current year.
Expenditures related to subsidies and transfers accounted for 49.3% in the total budget
of this user, for which purpose Denar 202 million was spent, i.e. 28.2% of the projected
ones.
Detailed data on each budget user are presented in the statistical annex attached at the
following link (http://finance.gov.mk/mk/node/693).
Budget BalanceBudget BalanceBudget BalanceBudget Balance
In the first three months of 2019, Budget of the Republic of North Macedonia realized
deficit in the amount of Denar 3,194 million, accounting for 0.46% of GDP, while central
budget deficit amounted to Denar 3,402 million, accounting for 0.49% of GDP.
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17
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
0
20000
40000
60000
80000
100000
120000
175000
180000
185000
190000
195000
200000
III
2018
IV V VI VII VIII IX X XI XII I II III
2019
Chart 4.1: Summary of unemployed from ESAM
(amounts in units)
Active
(right scale)
Other
(right scale)
Total unemployed
(left scale)Source: ESARNM
0
4000
8000
12000
16000
20000
24000
III
2018
IV V VI VII VIII IX X XI XII I II III
2019
0
1000
2000
3000
4000
5000
Chart 4.2: Summary of new employments
(amounts in units)
Newly employed of the registry … Total newly employed of the registry ( right scale)
Source:ESARNM .
4. 4. 4. 4. SOCIAL SECTORSOCIAL SECTORSOCIAL SECTORSOCIAL SECTOR
Number of Newly Employed and Registered Unemployed Persons in Number of Newly Employed and Registered Unemployed Persons in Number of Newly Employed and Registered Unemployed Persons in Number of Newly Employed and Registered Unemployed Persons in
EARNMEARNMEARNMEARNM
In the period January – March 2019,
Employment Agency of the
Republic of North Macedonia
registered total of 49,068 new
employments. Total number of
newly employed persons in this
period was higher by 6.0% compared
to the same period in 2018.
As regards the total number of
newly employed, 40.9% was engaged
on permanent basis, while the rest
of the employed were engaged on temporary basis and as seasonal workers. In March
2019, 19.8% out of the total number of newly employed persons was from the
unemployed records.
Total number of unemployed persons in March 2019 was 194,560, out of which 106,242
persons were active job seekers, while 88,318 persons were from the category “other
unemployed”. Compared to the same month last year, total number of unemployed
persons was higher by 1.5%.
Major percentage of the
unemployed (64.2%) came from
urban areas (cities), whereby 53.4%
were men. Analyzed by the level of
education, major part, i.e. 61.8% of
the unemployed persons, were with
incomplete secondary education or
less, 26.2% were with completed
secondary education, while 12.0% of
the unemployed persons were with
completed community college or
higher education level.
Observed by age, majority of the unemployed persons or 47.5% fall in the category of 25-
49 years of age. According to the time they waited for a job, 47.1% of the unemployed
persons wait for employment from 1 to 7 years, while 6.8% wait for employment for 8
years and more.
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18
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
0
1
2
3
4
5
6
7
8
9
II 2018 III IV V VI VII VIII IX X XI XII I II 2019
Chart 4.3: Average net-wage
(growth rates in %)
Nominal change Real change
Source: SSO
0
2
4
6
8
10
12
II 2018 III IV V VI VII VIII IX X XI XII I II 2019
Chart 4.4: Average net-wages by sectors of activities
(growth rates in %)
Agriculture Industry Services
Source: SSO.
13900
14000
14100
14200
14300
14400
14500
14600
306000
308000
310000
312000
314000
316000
318000
III 2018 IV V VI VII VIII IX X XI XII I II III 2019
Chart 4.5: Pension beneficaries and average pension
(beneficaries in units; average pension in denars)
Average pension … Pension beneficaries …
Source:PDIFNM
WagesWagesWagesWages
In February 2019, average net wage
increased by 4.5% in nominal terms
on annual basis, and it was lower by
1.3% in relation to the previous
month. The highest increase of
average net wage was observed at
the following sectors: Health and
social protection (11.6%), Transport
and storage (10.0%) and Agriculture,
forestry and fishing (8.5%). In
February, wages grew by 3.4% in
real terms on annual basis.
In February 2019, average gross
wage increased by 5.6% in nominal
terms on annual basis, and it was
lower by 1.3% in relation to the
previous month. The highest
increase of average gross wage was
observed at the following sectors:
Health and social protection (13.4%),
Transport and storage (11.3%) and
Contruction (9.8%). Real gross wage
surged by 4.5% annually.
PensionsPensionsPensionsPensions
In March 2019, Pension and
Disability Insurance Fund
registered 317,264 pensioners,
increasing by 1.9% compared to the
same period last year. Number of
pension beneficiaries increased by
1,672 persons on monthly basis. As
regards the total number of
pensioners, 65.0% were beneficiaries
of old-age pension, 23.9% of survival
pension and 11.1% of disability
pension.
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19
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
59,3% 59,4%
40,7% 40,6%
0
10
20
30
40
50
60
70
80
90
100
Deposits Credits
Chart 5.1. : Currency structure of deposits and credits
(March 2019)
Denar Foreign currency
Source: NBRNM.
Average pension in March 2019 amounted to Denar 14.55, being higher by 2.8%
compared to the same month last year. Ratio between the average pension and the
average paid wage in February 2019 (the most recent available data) was 59.4%.
In March, average old-age pension amounted to Denar 15,866, average disability
pension amounted to Denar 13,171, while average survival pension amounted to Denar
11,638. In March 2019, Denar 4,474.45 million was spent for payment of pensions,
accounting for 49.7% of the total social transfers.
5. 5. 5. 5. MONETARY AND MONETARY AND MONETARY AND MONETARY AND FINANCIAL SECTORFINANCIAL SECTORFINANCIAL SECTORFINANCIAL SECTOR
In March 2019, National Bank of the
Republic of North Macedonia
reduced the reference interest rate
by 0.25 p.p., i.e. from 2.50% to 2.25%,
as a result of the retained
continuity of favourable trends on
the forex market, indicating
absence of pressures in the external
sector and stable perceptions of
domestic entities, as well as
absence of price pressures.
Additional room for monetary loosening is also caused by the latest announcement of
ECB to retain the interest rates at the current level for a longer period than the
previously envisaged, as well as for additional loosening through other monetary
instruments. Interest rate on available 7-day deposits remained unchanged compared
to previous month, accounting for 0.3%.
Primary MoneyPrimary MoneyPrimary MoneyPrimary Money
In March 2019, primary money3 grew by 6.8% on annual basis, in conditions of increase
of ready money in circulation by 12.0% and increase of total liquid assets of banks by
0.5%.
On monthly basis, primary money dropped by 21.5%, as a result of decrease of total
liquid assets of banks by 39.7% , while currency in circulation increased by 0.7%.
3 Primary money is calculated as a sum of currency in circulation (including cash in hand), denar and foreign currency
reserve requirement and the surplus of liquid assets over the reserve requirement (in denars).
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20
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
0
2
4
6
8
10
12
14
III
2018
IV V VI VII VIII IX X XI XII I II III
2019
Chart 5.2: Deposits and credits
(growth rates in %)
Deposits Credits
Source: NBRNM.
Deposit PotentialDeposit PotentialDeposit PotentialDeposit Potential4
In March 2019, total deposits of
banks increased by 0.4% on monthly
basis. Sector analysis showed that,
compared to the previous month,
deposits of private enterprises
declined by 0.8%, while deposits of
households grew by 0.2%.
Analyzed by currency, in March
2019, compared to the previous
month, Denar deposits increased by
0.4%, while foreign currency
deposits picked up 0.5%.
Total deposit potential in March 2019 surged by 11.1% on annual basis. Analyzed by
currency, domestic currency deposits and foreign currency deposits surged by 12.3% and
9.3% respectively.
From sector point of view, this month, deposits of enterprises and deposits of
households increased by 8.7% each on annual basis.
According to maturity, short-term deposits surged by 7.5%, while long-term deposits
grew by 11.3%, on annual basis.
Currency structure of deposits remained stable, whereby share of domestic currency
deposits in the deposit base was higher, accounting for 59.3%.
Table 5.1. Deposit potential and credits to private sector;
4
NBRNM published the data from the monetary statistics, statistics of other financial corporations and the statistics of
interest rates according to the new methodology. Methodologic changes were made for the purpose of harmonization
with the recommendations under the newly published IMF Monetary and Financial Statistics Manual and Compilation
Guide as of 2016 (MFSMCG – IMF, 2016) and the IMF Technical Mission in the field of monetary and financial statistics in
NBRM as of 2015.
Deposit potential and credits to private
sector (March 2019) Denar million
Monthly
change Annual change
Deposit Potential 377,800
0.4% 11.1%
% By currency:
Denar 224,170
0.4% 12.3%
Foreign currency 153,630
0.5% 9.3%
By maturity: Short-term 166,309
0.2% 9.9.%
7.5%
MFRSMMFRSMMFRSMMFRSM....FFFF.8.5/9.8.5/9.8.5/9.8.5/9----2222
21
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
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1
2
3
4
5
6
7
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2018
IV V VI VII VIII IX X XI XII I II III
2019
Chart 5.3: Interest rates on deposits and credits
(in %)
Denar credits Denar deposits
Foreign currency credits Foreign currency deposits
Source: NBRNM.
Source: NBRNM
Bank CreditsBank CreditsBank CreditsBank Credits
In March 2019, total credits of banks to the private sector surged by 1.0% compared to
the previous month. Sector analysis shows that credits to enterprises and credit to
households grew by 1.1% and 1.0%, respectively. Analyzed by currency, in March 2019,
both Denar credits and foreign currency credits surged by 1.0% and 1.1% respectively on
monthly basis.
On annual basis, total credits grew by 9.0% in March 2019, in conditions of growth of
both credits to households of 9.7% and credits to enterprises of 8.4%. Denar credits
surged by 11.5%, while foreign currency credits increased by 5.4%.
As regards maturity, long-term credits experienced annual growth of 8.5% and short-
term credits picked up by 11.2%.
Interest Rates of Deposit BanksInterest Rates of Deposit BanksInterest Rates of Deposit BanksInterest Rates of Deposit Banks
In March 2019, total interest rate on
credits dropped by 0.02 p.p.
compared to the previous month,
accounting for 5.26%. Interest rate
on Denar credits dropped by 0.01
p.p., accounting for 5.74%, while
interest rate on foreign currency
credits decreased by 0.02 p.p. on
monthly basis, accounting for 4.69%.
Total interest rate on deposits in
March 2019 was 1.42%, remaining
unchanged compared to last month. Interest rate on Denar deposits remained
unchanged on monthly basis, accounting for 1.95% p.p., while interest rate on foreign
currency deposits decreased by 0.1 p.p., accounting for 0.79%.
Long-term 106,021
0.7% %
11.3%
Credits to private sector 324,798
1.0% 9.0%
By currency:
Denar 192,899
1.0% 11.5%
Foreign currency 131,899
1.1% 5.4%
By maturity:
Short-term 61,647
1.0% 11.2%
Long-term 243,452
1.1% 8.5% %
Doubtful and contested claims 16,587
-0.4% 10.4%
MFRSMMFRSMMFRSMMFRSM....FFFF.8.5/9.8.5/9.8.5/9.8.5/9----2222
22
Ministry of Finance
Republic of North Macedonia
Dame Gruev Street, no. 12, Skopje
Republic of North Macedonia
+389 2 3255 597
www.finance.gov.mk
2000
2200
2400
2600
2800
3000
3200
3400
3600
3800
0
500
1000
1500
2000
2500
3000
3500
4000
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2018
IV V VI VII VIII IX X XI XII I II III
2019
Chart 5.4: Total turnover at Macedonian Stock Exchange and MBI 10
(turnover in millions of denars; MBI 10 in index points)
Total turnover MBI 10
Source: MSE.
Capital MarketCapital MarketCapital MarketCapital Market
As for the capital market, in March 2019, total turnover on the stock exchange surged
by 232.3% on monthly basis, in conditions of increase of turnover on the basis of block
transactions and trading in best by 14.8% and 9.8%, respectively. Higher increase of total
turnover on the stock exchange was a result of the realized turnover on the basis of
public offer of securities amounting to Denar 307.5 million in March 2019.
Total turnover on the stock
exchange amounted to Denar 995.5
million in March 2019, being a
decline of 71.4% on annual basis.
Macedonian Stock Exchange Index
MSEI - 10 amounted to 3,664.66
index points at the end of March
2019, whereby the index grew by
0.3% on monthly basis, while,
compared to the same month last
year, the index was higher by 32.5%.
Reserve AssetsReserve AssetsReserve AssetsReserve Assets
Gross reserve assets at end-March 2019 amounted to EUR 2,866.4 million and,
compared to the previous month, they were higher by 0.1%, while compared to March
2018, they surged by 11.2%.