Skopje, 13 April 2023 (MIA) - The measures and policies implemented by the Republic of North Macedonia have maintained macroeconomic stability, the budget deficit has decreased, the public debt is at a sustainable level and remains within Maastricht criterion, inflation is showing a decreasing trend, the economy is resilient and in positive zone. This was stated at the meetings between Finance Minister Fatmir Besimi and IMF Deputy Managing Director Bo Li and Director of the European Department at the IMF Alfred Kammer, held within 2023 Spring Meetings of the World Bank Group and the International Monetary Fund in Washington.

“Uncertainty and challenges from the crisis are still present globally that are also felt in our country. Our determination is to respond to those challenges in the short term, and we are committed to mid-term fiscal consolidation and acceleration of economic growth,” Besimi said.

The measures we are taking to deal with the price crisis, he added, are already showing an effect by reducing the inflation rate for five consecutive months from 19.8 percent last year in October to 14.7 percent in March.

“The budget deficit since the beginning of the year is lower by about 16 percent compared to the realized deficit in that period from 2022, the public debt is at the level of 57.1 percent, as of December 2022, the national debt at the end of February is 44.9 percent of GDP, total revenues in the budget since the beginning of the year have grown by about 15 percent, economic activity shows resilience and growth, exports have grown by 10.2 percent in the first two months of 2023, the unemployment rate has decreased and is at the historically lowest level of 14 percent,” Besimi underlined.

He said that sound and sustainable policies were recognized by the IMF last year by approving funds under the Precautionary and Liquidity Line (PLL).

“It is a support of the policies we are implementing to deal with the crisis and to lay the foundation for further long-term growth. Support in times of crisis when financial assets in the markets become expensive and limited is a signal to investors about the soundness of the policies,” Besimi said, adding the great interest was expressed by investors at the auction on the 9th Eurobond that was issued during March 2023, the confirmed credit rating by the Fitch and Standard & Poor's agencies, as well as the interest in foreign investments in the country, which last year reached over €750 million, which is over 60 percent more compared to 2021.

At the meeting it was underlined that the implementation of the capital projects for which €800 million are projected in the 2023 budget as well as the investments in the industrial zones, are expected to have a positive impact.

Besimi also referred to the reforms being implemented in the area of public finances, the new Law on Budgets and the support that can be obtained in that reform process, through which a new modern budgeting system will be established, based on transparency and accountability and allocation of the funds where they will give the best results.
As part of the Spring Meetings, Besimi will also meet with top officials of the World Bank, including WB Regional Vice President Antonella Bassani and WB Executive Director representing the constituency, Koen Davidse.

Photo: Ministry of Finance