{27th August Skopje - Inflation poses challenges across Europe, however, wage growth in Macedonia has outstripped price increase, thereby preserving the living standard, Minister of Finance Gordana Dimitrieska-Kochoska stated in an interview on Sitel TV News.
“In our country, average wage has increased by 10.1% over the past year alone.At the same time, inflation accounted for 4.8% in the past month, implying that the standard of living has not declined—on the contrary, wage growth has outpaced price increase” Dimitrieska-Kochoska pointed out.
Minister explained that the Government is implementing short-term measures to mitigate the effects of inflation, while placing primary focus on long-term structural reforms and investments.
“Given its complexity, there is no “magic wand” for tackling inflation.Over the short run, measures such as price or profit margin freezes can be implemented, however, fundamental reforms are necessary in a long-term perspective.For this exact reason, I continuously stress the necessity for scaled-up investments in the field of agriculture.Fruit and vegetables recorded the highest price increase, triggered primarily by insufficient production and adverse weather conditions.Core inflation exerts the strongest price pressure, particularly through the services rendered in the hospitality industry,which, in turn, results from the rise in average wages, highlighting the need for more detailed analyses for the sake of making most accurate inflation projections, upon which basis, sound decisions on tax policy could be reached. It is essential to note that minimum wage increased by 5.6%, while the average wage surged by over 10%, whereas inflation stood at 4.8%.thus implying that the standard of living has been maintained in contrast to the period when the opposition parties were in power.When examining the data, it is evident that the average and minimum wages increased by approximately 35%, while food prices rose by 39%. This clearly demonstrates that during that period, the citizens’ living standard was adversely affected, yet we are now witnessing its improvement,” Minister explained.
Regarding the demand for a higher minimum wage, the Minister reiterated that the minimum wage increased by 5.6%, with the average wage rising by over 10%, while the process of negotiating the future minimum wage is being conducted within the Economic and Social Council, as supported by the Government.
“Hence, employers and trade unions must reach an agreement, with the Government refraining from intervening in the process.I would like to clarify the reason behind this: one party is responsible for paying the wages, while the other is the recipient thereof.They must find a common solution,” the Minister stated.
Regarding public debt and borrowing, the Minister emphasized that EUR 950 million has been projected as borrowing for the next year, the majority of which will be used for refinancing an existing Eurobond, while the remaining funds will be destined for financing the budget deficit.She underlined that the economy is experiencing positive growth, and that infrastructure projects serve as tangible evidence of actual investments and stable financial policy.
