of structural issues that are bottleneck for the growth of the macedonian economy. a comparative analysis shows that macedonia has pretty low level of investments ( on average about 15 % of gdp during 1997 – 2007 ). thus, further support which will lead to higher investments and higher stock of capital will play an important role for the long - term growth. we substantially lag behind those we want to keep up with. the unemployment rate is still staggering ( 32. 4 % ). income per capita is only half of the highest gni in the group, or only 33 % of the average gdp per capita ( ppp terms ) of the 27 eu countries. we have a strong need of funds and permanent technical assistance in order to continue with and accelerate our structural reforms. the greek example is a newest lesson. european and other funds, without all the painful and grave structural reforms, could not protect the country from facing the present crisis. however, it seems that, without structural reforms, they just boost the illusion. the recent crisis has highlighted the need for the international financial institutions to have adequate level of resources and flexible, innovative and swift technical infrastructure. it is a prerequisite for a well targeted, timely, coordinated and efficient response to global shocks. the strong increase of ibrd disbursements, policy based lending and advisory services in 2009, the dominance of social protections programs, on the background of the social implications of the crisis, pinpoint the rapid and well targeted adjustments in the lending policy and expertise provided by the world bank. the share of the world bank financial support to the region in the total wb financing in 2009 rose to 20 % ( compared to the average of 16 % for the previous three years ). significant weight was put on the enhanced social protection, regulation adjustment for the purpose of trade promotion, financial sector reforms and improved governance. dear guests, let me once more repeat that looking forward, the role of the world bank becomes even more pronounced. unprecedented policy support has yielded in tangible results reflected in improved global financial conditions and improved economic prospects. however, financial conditions are far from normal and growth prospects are highly uncertain and dependent on a policy support. the fiscal room has substantially narrowed and access to private financing is uncertain amidst high budget deficits and rising public debt. to be able to respond to the demand for its services a capital increase and reconsidering priorities in the region seems inevitable. although current situation calls for immediate assistance to protect poor and vulnerable people from the hardship they are

maja kadievska - vojnovik : foreign investment ’ s importance to the republic of macedonia ’ s economy speech by ms maja kadievska - vojnovik, vice - governor of the national bank of the republic of macedonia, at the presentation of the business climate survey in macedonia, macedonian - german economic association, skopje, 10 april 2014. * * * dear mr. martin knapp, dear guests, it is an honor and pleasure to have this opportunity today to attend the presentation of the business climate survey in the republic of macedonia, which is part of a regional survey of the representative offices of german chambers of industry and commerce in central and southeast european countries. namely, the survey provides significant information on the companies ’ perceptions about the macedonian economy, and i would like to keep to some of its important aspects. it is more than clear that there are tight connections between macedonian and german economy, which are being realized through several channels, such as : • trade channels • capital flows and • through the remittance channel. first, germany is and it raises its importance as the largest trade partner of the republic of macedonia. the share of the trade of goods with the eu member states in the total trade of rm of 52 % before the crisis, in 2008, reached 67 % in 2013. this significant strengthening of the trade relations with the eu member states is mostly a result of the intensified trade with germany, and moreover, such development is fully conditioned by the increase in the exports of rm to germany. thus the share of the export of goods to germany in the total export of goods of rm in 2008 equaled 14 %, while in 2013 it climbed to high 36 %, or in absolute amounts, from euro 383 million, for only five years, it reached euro 1, 154 million. it is a significant increase, a triple increase. it means that, despite the crisis in the euro area and its negative implications, the strong economy based on sound and solid economic fundaments – such as the german, proved to be our certain partner for placement of more than a third of the exports. besides the traditional export products, i. e. the export of the domestic textile and metal manufacturing industry, in the last two years, germany is important destination for export of the new capacities in the technological industrial development zones ( tidzs ), i. e. for the export of machinery and equipment and equipment of automotive industry. second, germany is our