29th July 2023, Skopje – Country’s economic growth will stabilize over the medium term, considerably boosted by private consumption and investments, including capital investments. EU accession progress will additionally support the economic prospects, contributing to strengthening both the structural and the institutional capacities. The country will continue the fiscal consolidation efforts, reducing inflation, protecting financial stability, as well as implementing structural reforms, with the debt remaining stable,
Standar&Poor’s noted in its Report, affirming BB- sovereign credit ratings on North Macedonia, with stable outlook. It is important that BB- sovereign credit ratings, with stable outlook, which North Macedonia is continuously affirmed since 2013, is maintained despite the health and economic crisis and the price and energy crisis.
S&P also noted that the country should continue the structural reform efforts, leading to enhanced institutional framework, including consolidation of sustainable fiscal policies, which could lead to raising the country’s ratings. Impact of the crisis will still be felt in 2023, however, budget deficit is anticipated to reduce to 4.4% in relation to 2022, below the government’s target of 4.6%. Adopted Organic Budget Law will help accelerate the fiscal consolidation efforts. The authorities are targeting a reduction in the government’s operating costs, with the tax reform expected to boost revenues. Government debt is also expected to stabilize over the medium term.
As noted in the Report, the Government is committed to maintaining the country’s attractiveness for FDIs.
Credit rating of a country gives insight into the level of risk associated with investing in a particular country and it is one of the key indicators the potential investors consider when making decisions.
Few months ago, Fitch Ratings revised North Macedonia’ outlook to stable from negative, confirming the sound policies the Government implements.
