2nd November 2023, Skopje – Economic growth higher than this year’s growth, lower inflation and continued fiscal consolidation are the expectations for the coming 2024, as core principles in the Budget, which is to be submitted to the Parliament for adoption by mid-November, Minister of Finance, Fatmir Besimi, said at today’s briefing.
“We expect more favourable GDP growth next year than the one in 2023, thereby continuing the fiscal consolidation we launched back in 2021 and reducing the budget deficit from 8%, as it was in 2020, to 4.6% this year. Budget deficit declining trend will continue next year as well, reaching below 4% of GDP. Capital expenditures, as this year, will be higher than the deficit, with funds for anti-crisis measures also being envisaged”, Minister Besimi said.
He emphasized that although elections will take place next year, core principles will be ensuring sustainable finances and sustainable growth, i.e. growth will pick up, being higher than the projected in 2023, with the deficit declining.
Execution of capital expenditures this year is by 110% higher compared to last year, with other parameters, such as investments and domestic consumption which drove the growth, also showing higher performance.
Inflation, already having reached 6.6% in September, is expected to drop, with the downward trend expected to continue in the coming period as well, declining by twice in the course of next year and falling to around 5%.
At the same time, as the Minister underlined, wages experienced a real growth which, starting April, increase more than inflation does.
As he pointed out, ninth set of anti-crisis measure will be announced soon. The measures will be implemented until the end of this year and at the beginning of the next, with Denar 4.6 billion being allocated therefore in the 2023 Budget under the Decision on Reallocation adopted in September and the Budget for the next year. The measures will both target the vulnerable categories of citizens and support the companies.