We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
SOME ASPECTS OF THE GROSS DOMESTIC PRODUCT GROWTH AND THE DOMESTIC CONSUMPTION INCREASE IN THE REPUBLIC OF MACEDONIA.
- Authors
BISLIMI, Sami
- Abstract
This paper deals with some aspects of the gross domestic product growth and the domestic consumption increase in the Republic of Macedonia. The paper aims through in-depth insight into the changes in the share of particular sectors in creating the gross domestic product (GDP), than the changes in the total supply and demand of goods and services on the domestic market, as well as in the foreign trade, to identify the implications from the increase in the domestic consumption on the most significant macroeconomic indicators. The analyzes shows that the maintenance of the current level of the domestic consumption (above the level of the effective GDP) have negative consequences and implications, due to the following reasons: The high level of the final consumption share in the GDP does not give opportunity to increase the investments, as a precondition to expand the production possibilities of the domestic economy; The covering of a significant part of the domestic consumption through increased import of goods leads to increase of deficit in the trade balance as well as the deficit on the current account; The covering of a significant part of the domestic consumption through increased import of goods and services leads to additional indebtedness and increase of the total and cumulative public debt of the country. The author evaluates that such situation of the Macedonian economy on long term is unsustainable.
- Subjects
NORTH Macedonia; CONSUMPTION (Economics); GROSS domestic product; ECONOMIC demand; ECONOMIC indicators; SUSTAINABLE development
- Publication
Economic Development / Ekonomiski Razvoj, 2013, Issue 3, p201
- ISSN
1409-7893
- Publication type
Article