19th May 2021, Skopje – Economic rebound of the Republic of North Macedonia is underway as assessed by the International Monetary Fund (IMF) Mission, which took place in the period 6th -17th May. They pointed out that sound policies and Government stimulus cushioned the blow of COVID-19 crisis on out economy, thereby stating that the fiscal policy should be further focused on supporting the business sector and the citizens.
It is a matter of the regular IMF Mission in our country, being led by Bergljot Barkbu. Under this Mission, many meetings were held with representatives from the Ministry of Finance, also including Minister of Finance, Fatmir Besimi, wherein the recent economic developments and expectations were discussed.
According to IMF, GDP growth is projected to reach 3.8% in 2021, thereby stressing that faster-than-expected vaccine rollout and take-up could lift this forecast.
Fiscal policy should remain supportive to help revive growth, spur job creation, and protect the vulnerable categories, IMF representatives stated. They noted that the Government legislated an extension of the support measures into 2021, aimed at the companies and the citizens, thereby pointing out that should a need arises, the Government should keep undertaking measures, which will contribute to the economic rebound.
International Monetary Fund assessed that the government’s investment plan was ambitious, and should be accompanied by further efforts to improve the efficiency of public spending. They underlined that the efforts to improve revenue collection would create space to scale up productive spending in crucial areas such as healthcare, education, and infrastructure, while also safeguarding the debt sustainability at the same time.
IMF representatives also noted that spikes in global energy and food prices have pushed up inflation, whereby consumer prices are projected to rise at a still moderate pace od 2.2% in 2021.