The Government projected the GDP contraction in Q2 and has undertaken all required measures. It remains committed towards supporting the economy,  protect the business community, citizens and vulnerable categories, Vice Premier and Finance Minister Zoran Stavreski told reporters on Saturday.

Strevski stressed that the Government currently focused on assisting the economy, improve its liquidity, protect income of employees and prevent layoffs.

"The State Statistical Office quarterly data was expected and projected on our part. In this regard, we undertook measures for intervention in several areas. The Budget was adapted through the May and June review, capital investments have been maintained at a high level, thus supporting the economy, along with the launch of two credit lines prior to the release of these numbers", added the FinMin.

Effects from the two measures - EUR 100 million for SMEs and EUR 11 million for agriculture companies - are expected soon.

Stavreski said measures for companies from the metallurgy industry have also been announced, assisting them towards securing funds. Moreover, majority of their requirements have been accepted.

"The Government also announced a programme for protection of vulnerable categories through execution of public works, creating about 4,000 jobs in the process, along with temporary employments through the Employment Service Agency. In addition, we work on protecting the remaining categories through timely payment of pensions, agriculture subsidies. This is a serious package for a small country such as Macedonia", he emphasized.

The Government remains open for cooperation with businessmen and review of measures that could be accepted within the Budget limits.

According to Stavreski, the problem is coming from the eurozone, which contracted 0.8 percent in Q2.

"This demonstrates that eurozone developments have consequences on Macedonia. The situation is similar in all neighboring states, Slovenia, Croatia, France, Netherlands, Spain, Italy etc. This is the reason why the Macedonian economy had negative results in the first two quarters of 2012", added the FinMin.

He said projections for the rest of the year depended from developments in the European economy.

"We can count on improvement if situation in the eurozone gradually stabilizes. If the recession resumes, all SEE states will suffer because they are small, while two-thirds of their exports go in the European states", underlined Minister Stavreski.