12th October 2023, Marrakesh – Economic policies and measures implemented in the country create sound basis for increased growth potential and higher growth rates over the medium term. The economy is resilient, macroeconomic fundamentals are sound, while IMF growth expectations for this year, according to the October projection, improved by 1.1 p.p. compared to April last year. Investments, including budgeted capital investments, experiencing three-digit increase in relation to last year, will play e key role. Inflation is expected to continue decelerating, with Government anti-crisis measures contributing thereto, Minister of Finance, Fatmir Besimi, pointed out at the meeting with IMF Executive Director, Paul Hilbers, Alternate Executive Director for North Macedonia, Luc Dresse, and Director of the European Department at the International Monetary Fund, Alfred Kammer. Governor of the National Bank, Anita Angelovska-Bezhoska, also attended the meeting.
“Economic policies we implement are affirmed by the relevant international financial institutions and investors, with the results attained speaking in favour thereof. Budget revenues are higher by 12% compared to the revenues generated last year, with the expenditures and the deficit being within the projections and in line with the gradual fiscal consolidation. Capital expenditures are higher by 142.2%. Public debt is maintained at the level as per the rules set in the OBL and the Maastricht Criteria. Financing of the Budget is ensured by the end of the year”, Minister Besimi pointed out.
He went on by saying that budget policies are complementary to the policies and the measures incorporated in the Fiscal Sustainability and Economic Growth Plan, the Public Investment Plan and the Growth Acceleration Plan. They are aimed at implementing gradual fiscal consolidation, reducing non-productive expenditures, increasing capital expenditures and implementing capital investments, as well as encouraging investments in the private sector, all to the end of achieving two-fold economic growth rates.
As the Minister said, IMF recognized these policies last year, acknowledging it with the access to funds under the IMF Precautionary and Liquidity Line. Funds under favourable terms and conditions were thus provided for implementation of the policies and the increased spending arising from the energy and price crisis, at the same time contributing to further maintenance of stable macroeconomic policies. Support from other international institutions, such as the EC which has provided support for budget policies, also speaks in favour thereof. Support is also expected from the World Bank for development policies, as well as budget support from KfW.
The points of discussion also covered the measures undertaken to cope with the energy and price crisis. The country has allocated EUR 225 million for managing the crisis, as well as additional funds under the Budget reallocation, adopted by the Parliament. Inflation decelerates, and such trend is expected to continue.