North Macedonia’s GDP in Q2 2020 lost 12.7%, the State Statistical Office of the Republic of North Macedonia stated on Sept. 7.
Such a big quarterly decline of the economy was registered only once since the country gained independence 29 years ago, in one quarter of 2001, when an armed conflict broke out.
According to the statistical authority, in Q2 exports of goods and services from North Macedonia decreased by 32% in nominal terms, while imports decreased by 30.2%.
Economist Nikola Popovski said that North Macedonia was “de facto” in a deep recession even though, formerly, it was not because Q1 had been minimally positive with, as he put it, growth of 0.1 to 0.2%.
“That should not fool us, we are de facto in a recession, a deep recession, because 12% in one quarter is a serious blow to the entire year,” Popovski told Telma TV, adding that he expected annual GDP to be 3-5%, provided the pandemic did not strike again.
Prime Minister of North Macedonia Zoran Zaev expects that, based on the data for Q1 and Q2, the country’s economy will end this year with the expected projection of a 4% decrease, as a result of the coronavirus crisis.