24th January 2026, Skopje - S&P Ratings affirmed North Macedonia’s economic policies, reaffirming the country’s ‘BB-‘ credit rating with a stable outlook.
It sends a strong signal of stability of the macroeconomic policy, the moderate level of public debt and ability of the country to timely and consistently service its financial liabilities, as well as to ensure continuity in pursuing the economic policies, even amid heightened global economic uncertainty.
As noted in S&P Report, growth is picking up, driven by scaled-up public investments linked to large infrastructure projects, as well as rising household incomes supported by higher wages and pensions.
Economic growth is expected to reach around 3.5% in 2026, moderating and stabilizing at about 3% over the medium term, complemented by a gradual recovery in private investments and external demand.
The Agency noted Government’s commitment to accelerating economic growth, anchored in large-scale infrastructure projects, as well as the commitments to strengthen institutional capacities, enhance the business environment, improve tax collection efficiency and reduce informality.
As stated in the Report, policy measures are focused on supporting domestic demand through increase in pensions and wages, as well as the continuation of fiscal consolidation.
Under the adopted 2026 Budget, fiscal deficit is expected to moderately narrow, averaging 3.5% of GDP, alongside scaled-up capital investments. Revenues are expected to outpace expenditures, supported by improved collection and strong economic activity, while expenditure side remains focused on capital investments in infrastructure, as well as wages, pensions and social transfers.
Fiscal consolidation is occurring, but debt levels remain higher than before the pandemic.
S&P noted that downside risks, related to the external environment, in particular the economic trends in the European Union, are broadly balanced by the resilience of the domestic economy, the stability of the financial system and the prudent monetary policy.
Further progress in implementing institutional and structural reforms, in particular the rule of law and the anti-corruption efforts, could additionally strengthen the country’s economic and fiscal position and contribute to an upgrade in the ratings.
Both Standard&Poor’s and Fitch revise the country’s credit rating twice a year. Credit rating is a key indicator for the investors when making investment decisions, reflecting the investment risk level.
