For the twelve consecutive months, Macedonia’s industrial output has been in decline, largely due to the world financial crisis.Macedonia’s industrial output in August was down 8.1 per cent compared to August 2011, shows the latest data from the State Statistical Office.
During the first eight months of this year, the output fell 7.1 percent compared to the same period in 2011.
The figures show that the country’s flagship metal and construction industries, which represent the backbone of the local economy, have been hard hit.
The mining on the other hand marks an increase. So does the country’s sizable textile industry, after significantly shrinking production last year.
Macedonia has had a tough time this year amid shrinking exports caused largely by the European crisis.
In mid-September the Statistical Office officially confirmed that the country is in a recession, after reporting a second consecutive quarter of negative growth.
The agency reported 0.9 percent negative growth in the second quarter of 2012, following a 1.4 percent shrinking over the previous three months.
In the hope of offsetting the economic slowdown, Macedonia in June approved taking a €100 million loan from the European Investment Bank. The country this year also increased spending on capital investment in hope of keeping the industry alive.
The World Bank in its latest report predicts a difficult year for the Western Balkans. It forecasts shrinking economic activity generally, as well as rising unemployment.