Impact of the Covid19 Outbreak on Macedonian Trade Flows

Main Article Content

Iskra Stanceva Gigov

Abstract

Reduced demand and the disruptions in value chains, as a result of the coronavirus, are expected to have a significant impact on the external sector, especially in economies such as Macedonian, whose manufacturing sectors are more integrated into global supply chains. Hence, the main purpose of the paper is to see to what extent and in which segments the new conditions have reflected on exports and imports in the Macedonian economy, and to review the measures and activities taken in order to mitigate short-term challenges and facilitate cross-border trade. The paper analyzes the trend and the changes that occur both on the import and export side, in general, by selected products and by countries. The data generally refer to a last 5 years. For more particular and specific analyzes, they cover the period from January 2019 until June 2020, on a quarterly basis. The main used research methods are: analysis and synthesis, statistical, historical and inductive-deductive method. The results have shown that the decline in economic activity and demand globally, including in the European Union, and thus in the most important Macedonian export partners, directly affects export sector in the country. Economy also faces serious import problems, especially due to its heavy dependence on materials needed for industrial production processes that are usually imported from the hardest-hit markets in Europe. The trade measures are mainly designed to avoid unnecessary barriers to trade and disruption of global supply chains.

Article Details

Section
Articles

References

Eurostat, EC data browser (2020). Retrieved from: https://ec.europa.eu/eurostat/databrowser/view/NAMQ_10_GDP__custom_77309/bookmark/table?lang=en&bookmarkId=b74febcd-e664-4f22-9c93-2ef510fe371f
European Commission (2020). European Economic Forecast. Autumn 2020. Institutional Paper 136. NOVEMBER 2020
Gjorgjioska, A. (2020). North Macedonia economy briefing: The economic contagion of COVID 19 - early shocks and measures. China – CEE Institute. Vol. 27, No. 2 (MK). March 2020. Retrieved from: https://china-cee.eu/wp-content/uploads/2020/04/2020e03NorthMacedonia.pdf
Government of Montenegro (2020). Retrieved from: http://gov.me/en/News/224012/PM-Markovic-introduces-Government-s-Second-package-of-economic-measures-EUR-75-million-gross-fiscal-impact-to-support-citizens-a.html
Groupe Société Générale, Import-Export Solutions (2020). Retrieved from: https://import-export.societegenerale.fr/en/country/albania/covid-country-risk; https://import-export.societegenerale.fr/en/country/bosnia-and-herzegovina/covid-country-risk; https://import-export.societegenerale.fr/en/country/serbia/covid-country-risk
International Trade Centre (2020). Tracking of COVID-19 Temporary Trade Measures. Retrieved from: https://www.macmap.org/covid19
IZVOZ.MK Export News Portal (2020). Retrieved from: https://izvoz.mk/%D0%B0%D0%BD%D0%B3%D0%B5%D0%BB%D0%BE%D0%B2%D1%81%D0%BA%D0%B0-%D0%B1%D0%B5%D0%B6%D0%BE%D1%81%D0%BA%D0%B0-%D0%B8-%D0%B2%D0%BE-%D1%82%D0%B5%D0%BA%D0%BE%D1%82-%D0%BD%D0%B0-%D0%BA%D0%BE%D1%80%D0%BE%D0%BD/
Macedonia2025 (2020). Retrieved from: https://www.macedonia2025.com/activities/single/the-economies-of-the-western-balkans-and-the-eu-in-the-second-quarter-of-2020-in-the-midst-of-the-biggest-economic-crisis/
Maliszewska, M., Mattoo, A. & Van der Mensbrugghe, D. (2020). The Potential Impact of COVID-19 on GDP and Trade: A Preliminary Assessment. Policy Research Working Paper 9211. World Bank Group. Retrieved from: http://documents1.worldbank.org/curated/en/295991586526445673/pdf/The-Potential-Impact-of-COVID-19-on-GDP-and-Trade-A-Preliminary-Assessment.pdf
Ministry of Finance of the Republic of North Macedonia. Retrieved from: https://finance.gov.mk/en/node/21
National Bank of the Republic of North Macedonia. Retrieved from: https://www.nbrm.mk/pocetna-en.nspx
OECD (2020). THE COVID-19 CRISIS IN THE WESTERN BALKANS: Economic impact, policy responses, and short-term sustainable solutions. Retrieved from: http://www.oecd.org/south-east-europe/COVID-19-Crisis-Response-Western-Balkans.pdf
OECD (2020). THE COVID-19 CRISIS IN NORTH MACEDONIA. 31 October 2020. Retrieved from: https://www.oecd.org/south-east-europe/COVID-19-Crisis-in-North-Macedonia.pdf
OECD (2020). COVID-19 crisis response in South East European economies. 24 November 2020. Retrieved from: https://read.oecd-ilibrary.org/view/?ref=129_129649-tclugxbw4j&title=COVID-19-Crisis-Response-in-South-East-European-Economies
State Statistical Office of the Republic of North Macedonia. Retrieved from: http://www.stat.gov.mk/Default_en.aspx
WB6 CIF (2020). THE COVID-19 CRISIS IN NORTH MACEDONIA. 27 April 2020. Retrieved from: https://www.wb6cif.eu/wp-content/uploads/2020/05/Covid-19-response-in-MKD-27.4..pdf
World Bank Group (2020). The Economic and Social Impact of COVID-19. Western Balkans Outlook. Western Balkans Regular Economic Report. No.17. Retrieved from: http://documents1.worldbank.org/curated/en/606131588087679463/pdf/The-Economic-and-Social-Impact-of-COVID-19-Western-Balkans-Outlook.pdf
World Customs Organization (2020). Retrieved from: http://www.wcoomd.org/-/media/wco/public/global/pdf/topics/facilitation/activities-and-programmes/natural-disaster/covid_19/bosnia-and-herzegovina_en.pdf?la=en#:~:text=All%20customs%20offices%20in%20Bosnia,against%20the%20COVID%2D19%20pandemic.
World Trade Organization (2020). TRADE STATISTICS AND OUTLOOK. Trade set to plunge as COVID-19 pandemic upends global economy. PRESS/855. Retrieved from: https://www.wto.org/english/news_e/pres20_e/pr855_e.htm