20th April 2018, Washington – European Commission’s recommendation for Macedonia to stat EU entry talks will boost investors’ confidence and boost the economic growth, Minister of Finance Dragan Tevdovski said in an interview for Bloomberg.
As for the interview, the Minister said that economic growth is forecast to accelerate to 3.2% this year and 3.5% in 2019, being driven by the solid private consumption and the very strong exports. These forecasts reflect increased industrial output, lending and foreign investments, since the new Government took office 11 months ago, ending the nation’s worst political crisis since Macedonia gained independence, Bloomberg stated.
-The Commission’s position gives a huge impetus for further reforms, being a great signal for both foreign and domestic investors, further underlining the positive effects of the political stabilization and the good outlook for the future of the country, Tevdovski said in the interview. He pointed out that the biggest challenge is to take advantage of the current positive political and economic climate for further progress and development.
Bloomberg’s text also indicates that the first leadership change in a decade has restored the ties with the EU. In addition, the country is working to solve the dispute over its name with neighboring Greece.
Tevdovski said for Bloomberg that Macedonia will achieve this year’s budget deficit target of 2.7% of GDP, as a result of the excellent tax collection. Minister of Finance expects for the deficit to reduce to 2% of GDP in a few years.
Agency also wrote that the Government plans to raise income tax for the highest earners to 18% next year from a 10 % flat tax now, which will help the cabinet raise revenues by about 0.4% of GDP. Corporate tax will remain unchanged at 10%, Bloomberg stated.
Minister of Finance Dragan Tevdovski takes part in the WB and IMF Spring Meetings, being held these days in Washington. (MIA).