Moreover, as in most countries, even in our country the gap is deeper in the part of the private accumulated capital than in the public capital. However, according to the dynamics, a characteristic of the Macedonian economy is that, unlike most of the economies in the region which registered significantly reduced investments (an average of about 10 p.p. in GDP) in the post-crisis period, until 2017 in our country their share registered an increase. This was underpinned by the stable inflow of foreign direct investment, the country's investments in infrastructural projects, and more important, through relatively solid and sound credit support. The credit support, however, was enabled through the continuous, albeit gradual, growth of the total domestic savings, including savings in the banking system. Looking ahead, there is no doubt for a need of investment growth, meaning an undisputed necessity for encouraging domestic savings in order to reduce the gap between domestic savings and investments. Otherwise, the gap will need to be financed to a significant extent by external sources, although such conditions are not unusual for developing countries, which, in conditions of limited domestic resources, are directed towards the use of external sources for supporting investment and economic growth. It is also important that the lack of domestic savings in one part is compensated by the high inflows of private transfers, which are maintained at a relatively high level in the Macedonian economy, which is close to the level of the domestic savings rate.
Anita Angelovska Bezhoska: The importance of savings for investment growth Speech by Ms Anita Angelovska Bezhoska, Governor of the National Bank of the Republic of Macedonia, on the occasion of the World Savings Day - celebration of the Macedonian Banking Association, Skopje, 30 October 2018. * * * Dear Guests, Ladies and Gentlemen, It is a great honor and pleasure for me to address you at today's event marking the World Savings Day - a day that banks and financial institutions around the world dedicate to promoting saving and raising awareness of the public about the benefits it brings. The saving is undoubtedly important from the aspect of both, individual and overall economic progress and maintenance of the macro financial stability. For each individual, or family, it is the principal and the most important step towards providing financial stability in a long run. By saving, we protect ourselves from unpredictable changes in the personal income dynamics, we more efficiently plan the longterm investments and we build sound foundations for maintaining stable finances throughout the lifetime. Saving is also beneficial for the entire society, as it is one of the key factors which the economy’s investment level depends on, which is a prerequisite for boosting the long-term economic potential. Usually, a significant portion of the savings is channeled into the banking system thus providing stable sources of financing to domestic banks, which is particularly important for the bank-centric financial systems, such as the Macedonian one, where the banks act as major financial intermediaries.