26th October 2023, Skopje – Public finances are being stabilized. Next year’s budget deficit is projected to be lower, while expecting for this year’ s growth to exceed the projected 2.1%, and to accelerate to 3.7% next year, as underlined by Minister of Finance, Gordana Dimitrieska-Kochoska, from Washington, where she participates in the Annual IMF/WB Meetings, in her guest appearance in “Tema na denot” TV Show on Sitel TV news.
“This year’s growth is projected at 2.1% and we stand thereby, however, I am optimistically anticipating a growth exceeding this percentage by the end of year. Growth is based upon the efficient operations of the institutions, intensified activities related to the implementation of the Projects pertaining to Corridors 8 and 10d, as well as the realization of the municipal projects, Minister Dimitrieska-Kochoska said, adding that 3.7% growth is expected next year, taking into account the expectations for the growth in global economy, particular of Germany as our major trading partner, as well as owing to this Government’s policies.
As per the Minister, what matters is that GDP growth, in the medium run, will lead to reduced public debt.
“Each borrowing implies higher public debt. However, if the borrowing we make pertains to investments that will produce value added to the economy, the public debt will rise in a short period, nonetheless, in the medium term, as the economy grows, the public debt will be reduced. Hence, priority should be given to borrowings, which will result in efficient projects, i.e. generate higher value added to GDP, thus leading to growth”, Minister of Finance said.
By indicating the data on this year’s budget deficit on monthly basis, while stressing that the budget deficit accounted for 71% of total projected budget deficit up to the moment this Government took office, she stressed that lower budget deficit level is projected for next year.
She also stressed the significance of the meetings held with the financial institutions in Washington, given their involvement in issuing the Eurobonds in our country. She also pointed to the need that they should be informed about the developments on regular basis, since in case of issuing a new Eurobond, we will be provided with much more favorable terms and conditions on the market.
