20th April 2024, Washington – Republic of North Macedonia keeps implementing sound economic polices. Fiscal policy appropriately responded to the crisis management, whereby the set goal as regards the fiscal consolidation in the coming period through savings and greater support for the business sector by scaled-up investments, is the basis for accelerated economic growth in the medium term. Government remains committed to the reforms crucial for making progress and attaining higher economic growth rates, as well as sooner EU accession. Progress made as regards the EU accession process and the implementation of the EU Plan on Growth of the Western Balkans have also additionally contributed to accomplishing the set policy goals, as pointed out during the Meetings in Washington, held between Deputy Minister of Finance, Filip Nikoloski and Deputy Managing Director, Bo Li, IMF Executive Director, Paul Hilbers, Alternate Executive Director for North Macedonia, Luc Dresse, as well as Director of the European Department at the International Monetary Fund, Alfred Kammer.
“Over the two years, IMF has provided Republic of North Macedonia with considerable support, which undoubtedly speaks in favor of the sound economic policies implemented thereby. Precautionary and Liquidity Line is yet another acknowledgment of our country’s sound policies, whereby the first review for PLL was positively evaluated by the IMF, thus allowing disbursement of the second tranche of funds thereunder.
We remain committed to gradual fiscal consolidation, reduced budget deficit, scaled-up public investments, boosted economic growth, while also attaining 5% average growth rates – Deputy Minister, Nikoloski pointed out.
He stressed the anticipation of economic activity intensification, which is to be boosted by the higher share of capital expenditures projected in the Budget, scaled-up investments in infrastructure projects, as well as stronger private consumption underpinned by the wage growth.
Apart from the domestic factors, as he added, the expected normalization of the global environment, stabilization of the global supply chains, economic activity growth at our major trading partners and similar will also have positive impact thereon.
“Projected 8.4% growth of gross investment will mostly contribute to the growth in 2024, predominantly driven by the intensified implementation of major infrastructure projects along Corridors 8 and 10, boosted investors’ confidence, anticipated inflow of foreign direct investments, greater interest in investments in renewable energy sources, boosted activity in the industrial zones and the announced new investments, which will result in higher import by 4.6%, as well as the private consumption, forecast to record 3.1% growth in real terms, coupled by the external demand stemming from the ameliorated external surrounding i.e. the Eurozone growth and the boosted economic activity in Germany”, Deputy Minister of Finance pointed out, thereby also stressing the expectations pertaining to the implementation of the EU Plan on Growth of Western Balkans and the activities carried out with intensified dynamics thereunder, as well as the inflation stabilization.
Such favorable surrounding will be basis for reorientation of Governments policies from the crisis management to attaining boosted economic activity, Deputy Minister pointed out, thereby underlining that given the still present risks, funds are also projected in this year’s Budget in order to overcome any potential crisis situation.
IMF/WB Spring Meetings taking in place in Washington, were attended by Deputy Minister of Finance, Filip Nikoloski and the Governor of the National Bank of the Republic of North Macedonia, Anita Angelovska – Bezhoska. Meetings in Washington will also be held between Vice President of the Europe and Central Asia Region at the World Bank, Antonella Bassani, World Bank Group Executive Director Eugene Rguggenaath and World Bank Country Director for Wester Balkans, Xiaoqing Yu.
