Geopolitical developments, including the tensions between Russia and Ukraine, may impede the recovery of the global economy and adversely impact primary commodity markets, although North Macedonia’s direct exposure to the Russian and Ukrainian economies is small and no significant direct effects are expected; unless the EU’s growth slows down, which would be felt in the country as the EU is our main trading partner, according to National Bank Governor Anita Angelovska Bezhoska, news agency MIA informs.
Speaking at the “Post Covid-19 and Recent Geopolitical Tensions: Which New Reality for Macroeconomics and Real Estate Markets?” high-level conference organized by the National Bank of Belgium, Angelovska Bezhoska said North Macedonia’s financial exposure to the economies of Russia and Ukraine was low.
“Trade with Russia and Ukraine is only 2% of the total trade exchange of our country. Financial exposure is very low, while foreign direct investment from these economies is only 0.5 percent of the total and is not present in the financial sector. Only 0.1 percent of remittances come from Russia and Ukraine,” the central banker said. “Nonetheless, indirect effects are also possible,” she continued.
“Russia is one of the largest exporters of energy and metals in the world, and Ukraine is one of the largest exporters of wheat.” Participants in the discussion said the economies of the Western Balkans were gradually recovering from the sharp decline during the pandemic, placing the countries’ growth between 3 and 7 percent of GDP in 2021.
“Most of the economies, including our country, have not yet reached their levels before the crisis, which is largely due to the slower recovery of investments,” Angelovska Bezhoska said. She added that the pace of economic recovery would largely depend on the pandemic, the energy crisis, and geopolitical tensions, among other things.
Other speakers at the conference included the governors of the central banks of Belgium, Croatia, Israel, Georgia as well as the deputy governor of the National Bank of Ukraine.
