Skopje, 26 March 2025 (MIA) – We have been implementing credible and consistent macroeconomic policies, supported through a long-term policy of fixed foreign currency course, improved management indicators compared with other countries with similar economic performances alongside a commitment to EU accession-related reforms, concluded Fitch Ratings in its latest report showing the country retained BB+ credit rating with stable outlook, says the Finance Ministry.

The credit rating agency, it adds, noted that in 2024, real GDP growth reached 2.8% despite external difficulties exceeding projections due to strong public spending and investments. Fitch expects growth peaking at 4% in 2026 as a result of implementation of investments on Corridor 8 and 10d.

“The report noted that investments remain strong, but that weak productivity growth and poor demographics will constrain medium-term growth. The credit rating agency also said that strong inflow of foreign direct investments (FDIs) was noted. According to Fitch, net FDI soared to a 17-year high of 7.1% of GDP in 2024, reflecting robust investments in free economic zones. Unemployment remains structurally high due to skills shortages and uneven regional economic development. Wage growth is strong, averaging 13% annually in 2022-24 and it has not adversely impacted competitiveness,” the Ministry says. 

The Fitch agency’s report says 2024 recorded a general government deficit of an estimated 4.6% of GDP in 2024, slightly short of the revised target of 4.9%, as a result of stronger than projected revenues and some under-execution of capex.

“In 2025, Fitch doesn’t expect deficit to change given the projected ramping up of capex and normalisation of pension and social security expenditure. Moderate increases in the revenue base resulting from electronic invoicing progress and unlocking of around 0.2pp of GDP in grants from the Western Balkans Growth Plan (WBGP) will contribute to a decline in the deficit to 4% by 2026. According to the credit rating agency, debt in the middle term will surpass 58 percent of the GDP,” states the Finance Ministry. 

Inflation, it adds, in 2024 stands at 4.2 percent, mainly driven by strong wage growth, rising domestic demand alongside strong credit growth in the private sector, according to Fitch agency. 

“The credit rating is prepared based on analyses of the policies conducted by the country. It shows the investment risk degree and is seen as one of the key indicators that potential investors take into consideration in the decision-making process,” says the Ministry.

The credit rating agencies Fitch and S&P prepare the country’s credit rating report twice a year. 

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