Skopje, 31 July 2024 (MIA) - The Macedonian economy is set to accelerate in 2024 to 2.5 percent and reach three percent by 2027, while the budget deficit for 2024 has been revised to 4.9 percent and fiscal consolidation efforts are expected to intensify from 2025 in line with the Budget Law, the Ministry of Finance said in a press release Wednesday citing the latest Standard & Poor’s report with which the country has maintained its credit rating of BB- with a stable outlook.

According to the Ministry, Standard & Poor’s states that the country has recorded a growth rate of 1.3 percent in 2023, resuming the trend of the last two years, due to low foreign consumption and investments. Risks that could impact a reduction of growth are related to the uncertain economic surroundings in the EU and the potential for increased prices of raw materials because of global geopolitical tension. However, the Agency expects growth to recover and reach three percent by 2027 driven by an expected increase of foreign consumption and strengthened credit activity.

Despite the low economic growth, the Agency notes that a significant reduction of the rate of unemployment has been recorded as well, which has been reduced to 12.9 percent in the first quarter of 2024.

The Ministry’s press release, citing Standard & Poor’s, states it is crucial to continue ensuring strong economic growth and implementation of structural reforms. A key goal, it says, is economic growth, set at five percent, driven by large infrastructure projects, attracting new investments, strengthening tax collection and increasing incomes, pensions and wages. 

Photo: MIA Archive