30th July 2025, Skopje - In its latest Report, S&P Credit Rating Agency reaffirmed country’s BB- credit rating with a stable outlook, also affirming the Government’s policies, representing a strong signal for the investors when making investment decisions.
As noted by the Agency, growth is picking up and remains a priority for the Government.
Growth this year is expected to be supported primarily by household consumption, driven by rising public-sector wages and pensions, as well as a pickup in investment activity, particularly in infrastructure. Thereby, S&P refers to the risks arising from the uncertainty in the economic outlook for the EU - the country’s main trading partner. By 2028, growth is projected to stabilize near 3%, underpinned by a gradual recovery in external demand and strengthening investment momentum.
The Government, as noted in the Report, is prioritizing institutional reforms, anti-corruption measures and the rule of law as key preconditions for EU integration. Economic growth remains a core priority, with the Government targeting growth of up to 5% over the medium term, underpinned by ambitious infrastructure projects, such as Corridors 8 and 10d, and increased private-sector investments, as well as more efficient tax collection, further increase in pensions and public-sector wages to support the domestic demand. As the Agency noted in the Report, public spending remains expansionary and fiscal consolidation is to be implemented, underlining that, under the Supplementary Budget, the 2025 budget deficit target has been reaffirmed at 4% of GDP. Fiscal Strategy, according to the Agency, outlines a path towards gradual fiscal consolidation, however, certain risks remain in meeting the projected targets. Fiscal performance through May of this year indicates a 9% year-on-year increase in revenue, driven primarily by stronger personal income tax collections, higher excise receipts, as well as growth in non-tax revenue. On the expenditure side, spending rose by 5% over the same period, reflecting upward pressures from public sector wages, current expenditure and social transfers. As for the debt, S&P noted that despite tighter global financial conditions, debt servicing remains relatively contained.
According to S&P, the Government remains committed to EU integration, a process the Agency views as an important anchor for advancing structural reforms over the medium term.
Standard&Poor’s revise the country’s credit rating twice a year.
