Macedonia is again the regional champion in improving business climate, thus paving the way for attracting quality foreign direct investments and the country is also moderately indebted. Its economic policies in times of crisis are adequate. Risks for the country as well as for those in the region are mostly external, it was concluded at a presentation of the South East Europe Regular Economic Report, held Tuesday at World Bank's office in Skopje.

"Macedonia retains its position as a leader in the region and ranks 23rd out of 185 countries worldwide. It serves as a good example in the region for other countries who should take into consideration its efforts to improve the business environment, attract investments and boost growth. Consequently, I believe that Macedonia in spite of its geographical position and other limitations is able to attract quality foreign direct investments," said Zeljo Bogetic, lead economist and coordinator for economic policy for Western Balkans at the World Bank.

Presenting the report via a video link from Pristina, Bogetic said Macedonia was a moderately indebted country. "However, it needs to pay attention to the ability of servicing its debts and maintaining the trust of foreign investors like many other countries with moderate or low debt."

Brigit Hansl - WB's team leader for Macedonia - said that the government's economic policies were an adequate response to the conditions of the crisis.

"In Macedonia, there are ongoing reforms related to social protection and ways to provide it to the most vulnerable groups. It is an aspect that has been supported by the WB. This is one of the ways to protect people in the midst of crisis. Next year's draft budget envisages increase in social protection," she said answering journalist questions after the report's presentation.

In general, she said, our recommendations how to spend the precious fiscal resources in a period of crisis is for them to be invested in capital future-productive projects related to infrastructure, energy sectors… as in mid-term they stimulate the growth in a country.

"Considering the fact that in crisis period some citizens are more vulnerable, we support the Government's efforts to expand the network of their social protection by various measures, such as efficiency of spending in this sector," Hansl said.

In regard to the favourable new WB loan for Macedonia, something that the opposition parties do not approve, Hansl said the bank's support was a result of Macedonia's sound policy and debt sustainability.

"Our budget support has been based on a strict evaluation of the macro-frame, which we have found to be appropriate as it is the case with the debt sustainability. We have recommended to our Board of Directors to approve this support, as it backs up Macedonia's European agenda and the efforts for boosting its competitiveness in regard to the regional rivals," Hansl said.

WB projection for Macedonia's 2013 GDP growth is at one percent. This projection, Hansl said, has been downgraded for all countries in the region, first and foremost due to the unfavourable external economic activity.

"This is a result of expected decline of the export rate, although Macedonia is successful in attracting foreign investments, which may bolster the export and hence the country's economic growth," she said.