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FLASH MACEDONIA

ASSISTANCE FOR ADAPTATION OF
AGRICULTURE TO CLIMATE CHANGE BY USAID

USAID demonstrated the results from the IMF: MACEDONIA WITH
test field set over the project for adaptation STABLE GROWTH, BUT
of agriculture to climate change. By taking all
stakeholders in a pear orchard in the village INCREASED RISKS
of Nagorichani, where several agricultural
measures for adaptation to climate change The economy will grow by 3.2
have been tested, USAID strives to strengthen percent, the credit growth will
the awareness of the Macedonian agricultural remain stable. This is the assess-
sector about the negative effects of climate change. The conducted adaptive practices ment of the International Mon-
and the results achieved in the orchard will help the farmers and the advisorsof the etary Fund in the latest Report
Agency for Support of Agricultural Development learn how to cope with problems upon the wrap up of the mission
that climate change causes in crops. The project team together with Prof. Dr. Marjan in Macedonia. The lower collec-
Kiprijanovski, technical expert of the project for orcharding and Prof. Dr. Vjekoslav tion of taxes, especially value add-
Tanaskovic, technical expert of the project for water conservation, addressed the ed tax, as well as the increase of
concerns of farmers and explained some of the strategies for adaptation of the the salaries for the police forces
agricultural production to climate change such as: use of UV protection netting, and additional capital expendi-
mulching, use of cover crops, use of various agents for protection of crops against tures which are imposed by the
sunburn and adherence to a detailed program for watering and fertigation. deteriorating security situation,
would likely result in a higher defi-
FITCH CONFIRMED THE CREDIT cit of about 4% of the GDP in 2015,
RATING OF MACEDONIA: BB+ compared to the targeted 3.4% in
the budget”, are the indications
This is the tenth consecutive year when in IMF’s Report. The political cri-
the credit agency “Fitch” confirms the sis and the non-implementation
credit rating BB+ for Macedonia, however of the political agreement from
this time the stable outlook was replaced Przhino, are considered the stron-
by a negative outlook. As a basis of its gest threats for the Macedonian
assessment, the credit rating agency uses economy. In addition, the possible
the growth of the gross domestic product spillover of the Greek crisis is con-
and the social development of the country sidered an important risk. The fis-
saying that they are “above the BB average”, cal room of Macedonia in the very
so again the credit rating of the country beginning of 2008 as a country
is BB+. Fitch considers that the positive with the lowest public debt is ex-
tendency for the credit rating is the business climate in Macedonia, which is hausted, and the debt in 2014 was
exceptionally positive; it assesses the baking sector as well capitalized and highly almost doubled to 43.3% of the
liquid; it assesses an improvement of the labour market, pointing out the reduction GDP, which is an additional risk
of unemployment of 10 percentage points in the past 10 years as a success. Fitch for the stability of the Macedonian
points to the domestic political situation as the main risk with the greatest impact economy. The IMF assesses the fi-
on the negative perspective, and their expectations are that the situation will be nancial sector as well capitalized,
overcome with the implementation of the agreement signed under the auspices of stable and profitable.
the Commissioner Hahn. In addition, as a medium sized risk, Fitch indicates the
public debt, stating that in the period between 2008 and 2014 it was doubled from
22.7% to 45.6% of the GDP, as well as the several-year continuous budget deficit.

12 September 2015