Trade is growing, Macedonia builds the exports. In the first quarter of this year (January-March) exports from the country is increased by 17 % compared to the same period last year, analyzes Leader.
However, it is important that during this period, Macedonian exports recorded higher growth than the value of imports. If we compare the data from the State Statistical Office, you can see that from year to year is increasing the coverage of imports by exports or exchange becomes more balanced .
Last year, the trade deficit amounted to 2.3 billion dollars, and import coverage by export was 64.7 percents. According to the latest data from the State Statistical Office relating to the first three months of this year, the coverage of imports by exports reached 65.5 %.
Macedonia is import dependent country. Most companies import raw materials so that they can produce its products to place abroad. Hence, when exports is growing and imports is growing too (13 % in the first quarter of this year), which then is reflected in increase in overall economic activity. In terms of exports, the fact is that the companies operating in free economic zones do most of it.
Therefore, in the first three months of this year, the largest growth in exports, the whole 99.7 % is registered in the sector of machinery and transport equipment, due to the work of the Belgian company Van Hull, which in Bunardgik 2 started to export buses intended for the U.S. market. In exports, the largest share again have supported catalysts with precious metals and their compounds, as a result of the work of another company of the free zone, this time is Johnson Matthey at Bunardgik 1. Regarding imports, the most common are platinum and its alloys, electricity, other metals that domestic companies use in production.
Problem for the Macedonian economy is on the one hand, we export very few products, and on the other, very few of them are with higher added value. Last year, almost half of the total export was made with about 20 products (Johnson Matthey catalysts, pharmaceuticals, automotive components again made at the companies zones, and followed Ferro – nickel and Ferro – silicon, raw tobacco, minerals and products of iron and steel).
Johnson Matthey, with both its factories, last year participated with about 20 percents of the total exports of the country. All companies in the zones show positive results and this year they are expected to have even greater contribution to total exports.
“In the first four months of this year, total exports from the zones reached figure of about 350 million, the highest for this historical period. This is mostly due to the second phase of Johnson Matthey, which is now operational, Johnson Controls in Shtip, Van Hull, as well as Kemet Electronics that runs at full steam” - explains the head of the Free Economic Zones, Viktor Mizo.
Matthey placed Britain on second position!
UK jumped to second place at the list of “Major trading partners of Macedonia” with the volume of exchange of commodities in the first quarter of 236 million U.S. dollars. The first place is still cemented Germany, which remains our largest trading partner, and that in the first three months of this year have exchanged goods and services worth 658 million dollars. At the top five “Major trading partners of Macedonia” are also Greece, Serbia, and Italy.
Surplus in trade we have realized with Germany (289.5 million dollars and coverage of imports with exports of 257.2 %), Kosovo (41 million and coverage of imports with exports of 623.4 %), with Belgium, the Netherlands and BiH. Largest trade deficit we have with UK – 206 million dollars, with coverage of imports with exports of only 6.8 %.
Asian markets – unknown to Macedonia!
Despite the recommendations of analysts for stronger economic performance of domestic companies in Asia, which have become particularly topical after the great economic crisis of the old continent and in the U.S. so far this is nothing. Within the 20 largest trading partners of the country, there is only one Asian country – China. Exchange in the first three months was 107.4 million, with a deficit on our side of the targets 84 million. Here is Russia, which is located at 19th place in relation to the volume of exchange of commodities in the country.
Economic analysts and business – community in recent years located the several reasons why we still cannot intensively perform at these markets: different consumer habits, the need for strong local partner, the mandatory introduction of HALAL – standard, language barriers, the need for credit lines for more supporting export companies etc.
“There is tremendous opportunity to position in these markets, but we should be more aggressive. Asia is huge market of 4.2 billion, compared with 650 million in Europe. We have great potentials, in many countries our products can pass, and I do not see reason why not to conquer Asia” – considered Vladimir Kovchegarski by the Council for Foreign Trade of Macedonia – Asia- Pacific.
While, these markets are only dream, in reality, 80 percents of Macedonia foreign – trade with countries – EU, 12.4 % in the Western Balkans, and only 1.2 % with the Organization for Economic Cooperation countries in the Asia – Pacific region.
