Strumica, 8 October 2025 (MIA) - For the third month in the row we have inflation that has gone from 4.9 percent to 4 percent and we expect it to continue to decline. This is good for the citizens, since it will ensure they have a higher living standard. I expect that in the next two quarters we will maintain the growth rate of the gross domestic product, and in the second quarter it will rise to around 7.8 percent, which is important because when calculating the budget deficit, the nominal growth of the GDP is key, and it will be the highest so far, Prime Minister Hristijan Mickoski said at Wednesday’s Business Forum in Strumica.

The Prime Minister said he expects that within this year’s budget consolidation, the deficit will end up below 4 percent.

“Consolidation began last year; we didn’t succeed in 2022 and 2023, and it will continue next year to bring us below the 3.5 percent level, which is standard in European countries. I expect stable macroeconomic policy, and although there is pressure to increase VAT, that will not happen – it remains at 18 percent. Even though there is pressure to raise the retirement age, we passed a law allowing pensioners to be engaged and pay taxes and contributions. There will be no tax increases, except for the one tax we must raise – the 15 percent profit tax for certain companies that meet the conditions imposed by the OECD. In our case, these are three types of companies: foreign ones operating in economic zones, foreign investors outside the zones, and domestic companies owned by multinational corporations operating in Macedonia,” Mickoski said.

Mickoski said in the years to come he expects the Government to lead a stable macroeconomic policy, a “stable pro-Macedonian policy” at home, and to focus on the EU integration on the foreign policy front, but “not at any cost, as the Government believes it has done enough” and “there is no longer a condition for the unconditional acceptance of any dictates or ultimatums”.

“We will do our homework when it comes to the Growth Plan and the economic agenda, we are delivering. We will implement all the reforms and continue to develop in our own way, but this Government, and as long as I lead it, will not accept any more bilateral blackmail, as was the case in the past. What we need is a steady step forward, it may be small, but it must be stable until we reach consolidation. If someone decides to invite our country to join – it's clear that’s a political decision made by others, not by Macedonia – we have clearly stated that our future is to be there,” the Prime Minister stressed.

Mickoski said negotiations are ongoing with the U.S. over a tariff agreement involving around eighty products, with the tariff expected to range between zero and 8.

“Practically so we can be the most competitive, and I think we will succeed with some of those products, including agricultural goods. We already have significant bus exports to the U.S. through the former ‘Van Hool’ amounting to US$250 million. If we manage to finalize the agreement as planned, exports could rise to US$1 billion, and there are plans to build two bus factories in Macedonia, one of which could be located in Strumica,” the PM said.

Mickoski noted the country is on the verge of realizing infrastructure projects in partnership with the United Kingdom.

“At the moment, we are reviewing an indicative, non-binding financial offer and will enter the process of defining the agreement. We expect the implementation of this major capital project to begin in the fall of next year. If all of this unfolds as planned in the coming years, we anticipate an investment wave between EUR 4 and 5 billion, or roughly EUR 1 billion annually,” said the Prime Minister.

The Business Forum was also adressed by VMRO-DPMNE's mayoral candidate for Strumica who said the mayor’s task is to support the business community.

“We must be partners, not administrative obstacles. That’s why we will establish an economic-social council that will work alongside the civic sector and public administration to ensure you are well-informed about all projects,” said Jankov.

Addressing the business community at the forum, VMRO-DPMNE and coalition mayoral candidate Petar Jankov emphasized that the mayor’s role is to support the business sector.

The Business Forum in Strumica was also attended by Deputy Prime Minister and Minister of Transport and Communications Aleksandar Nikoloski, Minister of Finance Gordana Dimitrieska-Kochoska, Minister of Agriculture, Forestry and Water Economy Cvetan Tripunovski, Deputy Minister of Economy Marjan Risteski, and former Minister of Finance Zoran Stavreski, who responded to questions from the business representatives.

Photo: MIA