- Sc. Valbon Mehmedi1
Prof. Dr. Seadin Xhaferi2
Prof. Dr. Igor Zdravkoski3
Prof. Dr. Pece Nikolovski4
1 University St. Kliment Ohridski Bitola, North Macedonia
2 University of Tetova, North Macedonia
3 University St. Kliment Ohridski Bitola, North Macedonia
4 University St. Kliment Ohridski Bitola, North Macedonia
boni.mehmedi@uklo.edu.mk
seadin.xhaferi@unite.edu.mk
igor.zdravkoski@uklo.edu.mk
ABSTRACT
Realizing the need for real research on the macroeconomic potentials and the need for further development of the international relations of a certain country, namely the Republic of North Macedonia, this paper aims to reflect the financial and macroeconomic situation of the RNM in the period 2013-2023, namely analyzing the movement of some financial and macroeconomic indicators, the period of major changes as a result of the COVID-19 pandemic, and the recovery of the RNM economy, post-COVID-19 period.
In this paper the importance of economic growth, the factors that influence economic growth, government policies and economic growth will become clearer. The subject of the balance of payments, the factors affecting it and its movement will be elaborated in the aforementioned period. Also, the connection between the inflation rate and the exchange rate with the net export will be elaborated, as it is an important factor in the country’s international economic relations. As the last but not the least important goal is the interpretation of the results of the empirical and regression analysis on the connection of the exchange rate and the inflation rate with net exports, as well as giving recommendations in the future in terms of protection against large fluctuations in exchange rates, the possibilities for intervention of government policies in reducing inflation in order to improve the economic situation.
Through this analysis, it has been determined that the exchange rate has a positive effect on net exports, while the inflation rate has a negative effect on net exports. Fiscal and macroeconomic policies should be aimed at regulating the stability of the domestic currency, controlling the inflation rate and improving the balance of payments deficit.
Keywords: Economic growth, Exchange rate, Inflation, Covid-19
INTRODUCTION
It is known that the power of a state is seen in its economic strength, its financial stability, in the correct management of macroeconomic, fiscal and monetary policy as well as in its economic development.
One of the important factors that develops a country is undoubtedly the economic growth, the measure that expresses the differences in the Gross domestic product of the national economy from one year to the previous year.
Volume 9, No.1 (2024): April
ISSN 2661-2666 (Online) International Scientific Journal Monte (ISJM)
ISSN 2661-264X (Print)
DOI : 10.33807/monte.20243109
DOI URL: https://doi.org/10.33807/monte.20243109
Full Text: PDF
This is an open-access article under the CC BY-NC-ND license (creativecommons.org/licenses/by-nc-nd/4.0/)