23rd October 2024, Skopje – This year’s Macedonian economic growth, as per Ministry of Finance projections, accounts for 2.1%, which is projected to exceed 3.5% next year, with the budget deficit being forecasted at 4%, Minister of Finance, Gordana Dimitrieska-Kochoska, highlighted in her interview for Voice of America in Washington, where she took part in the IMF/WB Annual Meetings.
“We are completely changing the economic concept in view of supporting investments, rather than consumption practices. There is an ongoing major municipal project, already announced. The public call is in progress, with a high outcome probability. Likewise, EUR 250 million is intended as support to the private sector. Thus, we expect to attain MoF’s projected growth rates for certain, i.e. 2.1% economic growth by the end of the year, projected to probably exceed even 3.5% next year”, the Minister said, reflecting on the World Bank’s projections, which as stated, are logical ones, taking into consideration the assumptions shared by the World Bank, which, in fact, are based on the aftereffects of the previous Government – poor performance and low GDP growth.
Regarding the budget deficit, she underlined that the fiscal rules, projecting budget deficit of up 3% of GDP and a public debt of up to 60% cannot be attained overnight, which takes more time for its consolidation.
“Next year’s budget deficit is projected at 4%, which will account for 3.5% in 2026, followed by its reduction to 3%, reaching a complete consolidation. What is most important, according to me, at least right now, is the corruption issue. With respect to this, as Minister of Finance in charge of part of the institutions, which are to remain vigilant, at least in the grey economy area, I would say that we are not making any compromise, we are rather fighting tooth and nail against crime and corruption, and I expect positive results in the period that follows”, Minister of Finance, Dimitrieska-Kochoska, said.
In her interview, she also touched upon the loan facility extended by the Hungarian Export Import Bank, as a better option to address the foreign borrowing given the favourable terms and conditions offered thereby rather than by issuing a Eurobond as planned by the previous Government.
“It is natural for each new borrowing to generate negative effects. However, the previous Government planned to borrow abroad by issuing a Eurobond. We can be proud of, both me as Minister of Finance and as Government, being able to provide a loan under much favourable terms and conditions, i.e. extremely lower interest compared to the one in case of issuing Eurobond. We can perceive the undermining of our success in view of attaining such a low interest rate of 3.25%, thus downplaying the importance of making considerable savings in the Budget. Choosing a cheaper borrowing option unlike the previously planned speaks in favour of our actions”, Minister of Finance indicated, thereby adding that interest rate of over 6% would have been unjustifiable.
She stated that the funds are intended for both investments in the private sector and support of infrastructure municipal projects.
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