Skopje, 29 July 2023 (MIA) - North Macedonia's economic growth will stabilize in the medium-term, private consumption and investments, including capital investments will provide a significant impulse. EU integration progress will provide an added impact, also contributing to the strengthening of structural and institutional capacities, notes the latest "Standar & Poor's" report that affirms the country's BB-/B credit rating with a stable outlook.

The report reads that the country will continue with its fiscal consolidation, accompanied by lower inflation, protected financial stability and structural reforms, whereas debt will be maintained at a stable level, says the Ministry of Finance.

It adds that the country has continually maintained the credit rating BB- since 2013, despite the health-economic and energy crises.

The agency notes it is significant to resume with the efforts for structural reforms, strengthening of institutional capacities and consolidation of sustainable fiscal policies, which could lead to a higher rating. The 2023 crisis will still have an effect but the budget deficit is expected to be lower than in 2022, at 4.4 percent, lower than the Government projections of 4.6 percent. The recently adopted Organic Budget Law should help accelerate the country's fiscal consolidation efforts. The Government is focused on lowering expenditures and the tax reform is expected to consolidate revenues. Government debt is expected to stabilize in the medium term.

The agency notes that the government is committed to maintaining the country's attractiveness for foreign direct investments, reads the press release.

Photo: MIA archive