Skopje, 20 December 2023 (MIA) - Current challenges facing German economy present a great opportunity for Macedonian economy, but country's framework conditions must be improved, the head of the Delegation of German Industry and Commerce (AHK) in North Macedonia, Antje Wandelt, said on Wednesday.

"Germany is currently facing challenges and conducting analysis in order to move production and overcome difficulties, i.e. considering where to transfer production. I believe this is a great chance for North Macedonia, a great opportunity for the country to position itself better. But work should be done to improve the framework conditions it offers," Wandelt said ahead of Wednesday's "Christmas Talks with Heidelberg 2023" event.

North Macedonia has a large number of German investments, she said, including a large number of reinvestments by current German investors that were made this year. She added that this will reflect on the trade exchange between the two countries, therefore they expect increased exports to Germany in the coming calendar year.

"When bringing in new investments, one should be mindful of their diversification, and refrain from making Macedonian economy dependent on the automobile industry by bringing in other areas. This is currently being worked on. We have investors for medical devices and equipment, metalworking industry, and investors working for German railway, and a new investment for manufacturing batteries used in industrial products and devices," Wandelt noted.

She said challenges facing Macedonian economy will persist in 2024 as well.

-"A solution for labor shortage first must be found, because future new German investments will require a qualified expert staff,"  Wandelt noted. 

She mentioned that in 2017 AHK launched a program in North Macedonia for dual vocational education based on the German model.

"So far, this program has been running smoothly, and we have teaching staff, one for mechatronics and one technician on industrial manufacturing. Currently, 150 young students are enrolled in this educational program, in seven cities across the country. We expect the next generation to graduate and receive certificates which will help improve the quality of staff in German investments," Wandelt said. 

Professor Vancho Uzunov said that 2024 will be an election year in North Macedonia, Europe and the United States, which means that if next year is any better, the situation will improve.

"For next year, there is one good news, and one not so good news. The good news is that inflation is expected to slow down, which means that we will slowly exit the current inflation pressure and enter calmer waters, from a microeconomic point of view. It is good news for business in any case," Uzunov said.

The not so good news is that 2024 will be an election year.

"It is an election year here, in Europe and in the United States. Lots of elections for one year. They are good for democracy, but not for business. An election year in small countries, such as North Macedonia, means that for half a year the economy will experience reduced activities or unchanged conditions - nothing changes. The government will not work, we will have a caretaker government, which means that if next year is any better the situation will improve," Uzunov stressed. ssh/nn/ 

Photo: MIA