Public debt and economical growth: Republic of Macedonia case study
Dr. Elmi Aziri
Universiteti i Evropës Jug-Lindore, Ilindenska BB, Tetovë, Republika e Maqedonisë
While many countries feel the consequences of the economic crises caused by public dept a big number of countries use the same as an instrument to fight the consequences of the crises. The case of the Republic of Macedonia is similar since Republic of Macedonia has recorded permanent increase of its public dept since 2006. If the trajectory shows rise in public dept then the risk increases analogically. In absolute values the dept in 6 years records an increase of 1 billion Euro. Even though the Republic of Macedonia keeps its public dept in a low level its trend and purpose remain inconvenient. The Government of Macedonia has projected increase of the public debt for the forthcoming years. It is important that we emphasize the disturbing project of Skopje 2014 on which the Government has spent the money from the public debt. Many economists have considered this project as unproductive which in their opinion will have long term effects on fiscal terms of the country.
Keywords: Public debt, Republic of Macedonia, Economic growth