It is way too vulnerable, due to high presence of exports in sectors exposed to changes in world prices and world demand as well as due to significant reliance on private transfers as source for financing the trade deficit. Additional problem is the approach to external financing. It is less available. Expenses increased. Investors have either lost their capital or they are waiting for better and less risky period. Under such developments in the current and capital account of the balance of payments as well as due to generated unfavorable expectations of the economic agents the pressures in the foreign exchange markets become bigger. The fall in the external demand caused reduced activity among export-oriented industrial sector in the Macedonian economy. The volume of the industrial output in the last quarter of 2008 registered an annual drop of 7.6 percent, which intensified during January 2009, thus reaching 16.7 percent. Tightened conditions for credit as well as pesimistic expectations for the length of the recession reflect over domestic demand. Initial signs of a deceleration of household consumption growth are registered in trade, in which during q4, 2008 the amount of turnover registered dropped by 5.1 percent. In circumstances of private sector refraining from investments, the expectations are looking towards deceleration of the investment activity. In any case, the risks for the current projection of the economic growth definitely are in direction of the realization of growth significantly lower then projected, and maybe even that is a high optimism.
The form of government was unstable, the payment system was rather chaotic and there was a general shortage of credit facilities. People who wanted to try something new found themselves restricted. Many saw no alternative to emigrating and trying their luck in America. It seems that more than a million people left Sweden for the new country in the west before the process of industrialisation began in earnest here. Less than a hundred years later, at the end of the 19th century, the Swedish economy had undergone a dramatic transformation. Inflation was low and the payment system functioned properly. The country vibrated with energy in every sphere. An impressive number of new products were developed on the basis of Swedish inventions and many of them became world leaders. Swedish financial experts were involved early on in exploiting the innovations. More and more people found work, living standards rose and Sweden achieved one of the highest growth rates in the world. When it comes to the causes of Sweden’s rapid economic transformation, there are some differences of opinion. The industrialisation taking place elsewhere was probably a major factor. Another was the possibility of importing capital for large investments. Domestic reforms in key areas may also have helped create the conditions for growth. Price stability was presumably of some significance. Low, stable inflation reduces uncertainty about the future for those who have to plan for the long term.