22nd October 2023, Skopje – Considerable progress has been achieved in the relations between the Republic of North Macedonia and the World Bank Group with the country becoming a donor to the World Bank’s International Development Association (IDA), a World Bank’s Fund. All WB member countries are members of IDA, and the very fact that we have started contributing thereto implies that our economy has achieved higher level of development, Minister of Finance, Fatmir Besimi, wrote in his latest column, pointing out that signals IFIs send about the Macedonian economy through the autumn forecasts call for attentiveness, but they also expect for our economy to yet develop and deliver results.

“We have generated economic growth amid economic stagnation at our major economic partners and raging crises. Fiscal policy is prudent, with budget deficit reduced, thereby providing funds for supporting the most vulnerable and the businesses through favourable loans, at the same protecting the living standard of the citizens by increasing the wages and the pensions amid inflation decrease (inflation was reduced from 19.8% in October 2022 to 6.6% in September 2023 and the downward trend will continue). Unemployment continues to decline, hence it dropped to 13.1% in February 2023 from 17.3 %, the level seen before the outbreak of COVID19. Once the pandemic was over, the trend of poverty reduction has continued. Investments scale up, reaching 35% of GDP in 2022 (being higher that the level seen before the pandemic, dropping to 29% in 2020), with the FDIs alone accounting for 5.2% of GDP. This is a significant increase three years in a row, i.e. 1.4% and 3.3% in 2020 and 2021 respectively. Public investments, which are projected at 5% of GDP this year, twice the previous average, also contribute considerably to the investment boost. Trends in foreign trade in 2023 have contributed to decline of trade deficit by 30% compared to the same period in 2022. Such trends, which are a result of the economic policies and reforms, have played a part in improving and, later on, affirming the country’s credit rating in the years following the COVID-19 induced crisis”, Besimi underlined.

He also pointed out that IMF has revised upward this year’s expectations for the Macedonian economy (from 1.4% to 2.5% growth of GDP in 2023), although it has revised down considerably the forecasts for the EU and Germany, as our trading partners, with the economic growth perspectives improving over the medium term. Western Balkans Regional Economic Report, published by the World Bank recently, speaks in favour thereof (forecasting accelerated economic growth over the medium term), noting that EU integration process will speed up the reform process and strengthen the national economy’s growth capacity. They base the growth prospects on scaled-up investments and improved infrastructure.


Оваа вест е достапна и на: Macedonian Albanian

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