Skopje, 30 July 2025 (MIA) – The credit rating agency Standard & Poor’s, in its latest report, affirmed the country’s credit rating at BB-with a stable outlook, reaffirming government’s policies and representing an important signal to investors when making investment decisions, the Ministry of Finance said Wednesday.

In the report, the credit agency notes that economic growth is accelerating and remains a priority for the Government.

The report states that this year’s economic growth is expected to be driven mainly by household consumption, supported by rising wages and pensions, as well as increased investment activity, particularly in infrastructure. The Agency points to risks stemming from uncertainty in the European economy, the country’s main trading partner. By 2028, it projects that growth will stabilize at around 3%, supported by a gradual recovery in external demand and stronger investment activity.

As stated in the report, the Government continues its efforts to implement institutional reforms, fight corruption, and uphold the rule of law, key prerequisites for EU integration. Standard & Poor’s highlights that economic growth remains a top priority for the Government, aiming for up to 5% growth in the medium term, driven by the implementation of ambitious infrastructure projects such as Corridors 8 and 10d and increased investments in the private sector. This is followed by more efficient tax collection, as well as further increases in pensions and public sector salaries to support domestic demand.

The report notes that public spending remains expansionary and points to the implementation of fiscal consolidation, emphasizing that the adopted budget revision confirms the target budget deficit for 2025 at 4% of GDP. According to the Agency, the Fiscal Strategy sets out a gradual fiscal consolidation, but the Agency expects certain risks to the achievement of the projections. Revenues from the beginning of the year to May recorded a 9% annual increase, driven by higher collection of personal income tax, increased excise revenues, and growth in non-tax revenues. On the expenditure side, consumption during the same period increased by 5%, driven by higher public sector wages, current expenditures, and social transfers. Regarding debt, it is noted that despite tight global financial conditions, debt servicing remains relatively controlled.

According to Standard & Poor’s, the Government remains committed to EU integration, a process the Agency highlights as a key pillar for progress in structural reforms over the medium term.

Standard & Poor’s evaluates the country’s credit rating twice a year.

Photo: MIA