11th September 2026, Skopje - The investment cycle observed in the past period ought to be safeguarded. Over the past ten consecutive quarters, the economy has maintained growth of around or above 3%, reaching a 4.3% growth rate in the last quarter. This reflects that the economy is on a sound trajectory, Minister of Finance, Gordana Dimitrieska‑Kochoska underlined during a panel discussion entitled “From Eurozone Pressures to Fiscal Resilience: Budget priorities, Private Sector Realities and Regional Lessons”, at Ohrid 2026 Regional Conference, where she emphasized that supporting the investment cycle goes hand in hand by implementing a gradual fiscal consolidation, which must remain a priority.
“The question is whether one should strive to keep the budget deficit at the level initially projected. Another consideration is whether a slight adjustment to the initial projections may be required to back the investment cycle continuing over an extended period of time. And this was one of the major challenges encountered by the Ministry of Finance during the preparation of the most recent Supplementary Budget. “Undoubtedly, our decision was to ensure balance. Major portion of the budget deficit will be directed towards financing projects that generate economic value added, while parallel efforts will focus on the revenue side, since fiscal consolidation is not confined to expenditures alone,” Minister of Finance Gordana Dimitrieska‑Kochoska underlined.
She recalled that Macedonia was among the countries with a sizeable budget deficit in 2020, yet in 2021, consolidation did not take place, leading fiscal consolidation to proceed at a slower pace. Its implementation was further affected by the payment of expenditures stemming from laws, which had not previously been part of the Budget.
“Fiscal consolidation must be given priority, as it will ultimately shape the credit rating and the future path of interest rates, while recognizing that this priority should not be tied to a fixed timeframe. Fiscal consolidation should not be pursued hastily, aiming for a deficit below 3% and public debt under 60%, if this comes at the cost of disturbing the investment cycle,” Minister of Finance pointed out.
She added further on that investments are key to growth, with second‑quarter GDP data confirming that they are the primary driving force of growth. She noted that there is still room for improvement, yet the progress is notable given that GDP growth rate stood at 1.6% in the first quarter of 2024.
She also stressed that growth is not accomplished by government action alone, highlighting the significant contribution of private sector investments, thereby adding that, alongside the support provided through the Development Bank and the Law on Financial Support of Investments, predictability is equally significant.
“Preserving the investment cycle is essential, with the Government providing support to the extent possible. Is this sufficient? No, since the economy still faces structural challenges, and certain changes may be required. The Development Bank provides support to the private sector, and changes to the Law on Financial Support of Investments may be considered in view of supporting targeted companies from specific sectors identified as strategic for strengthening, given that reliance on foreign investors from 15 years ago cannot be the sole basis of GDP, though they remain its strongest driver,” the Minister of Finance underlined. We are on the right track, yet further work is required. There is still room for improvement, and I believe that in the period ahead we will succeed in attaining even better performance,” Minister stated.
She emphasized that the Growth Plan serves as a crucial driver of economic transformation, requiring not only administrative and legislative change, but also enhancement of the legislation as a whole, improvement of state practices, and approximation with the EU Acquis.
