Skopje, 28 January 2023 (MIA) – North Macedonia got confirmation for the policies it implements even amid crisis and maintained the credit rating BB- with a stable outlook, as reaffirmed by the Standard & Poor’s (S&P) Credit Rating Agency. The country has maintained a continued credit rating of BB- with a stable outlook, and it is especially significant that the rating has not changed at a time when it was facing a health and economic crisis, as well as the price and energy crisis, said the Ministry of Finance.  

The stable outlook according to S&P, it added, reflects expectations that the Government’s proactive policy-making, as well as moderate levels of government debt, will offset the multiple risks stemming from the conflict in Ukraine.  

“S&P notes that the crisis will have an impact on economic growth during this year as well, but expectations are that in the medium term it will go back to the pre-crisis trend. Strong private consumption supported by accommodative monetary policy, wage growth and remittances from abroad will remain drivers of growth according to S&P. In addition to consumption, investments will be a key driver of growth, particularly public investments, including the Corridor 8 and Corridor 10 highway projects. A contribution to the country’s economic prospects is also expected from the move forward in the EU accession process. Foreign direct investments are expected to recover, and inflation and price pressures to decrease,” the Finance Ministry pointed out.  

In addition, S&P expects fiscal consolidation to continue. The crisis will still have an impact in 2023, but the budget deficit is expected to be lower than in 2022 at a level of 4.1 percent, and this is lower than the government’s projections (4.6 percent). According to the agency’s report, the new Budget Law, which provides for fiscal rules and the establishment of an independent Fiscal Council, will contribute to the country’s efforts for fiscal consolidation. It is noted that stabilization of the state debt is expected in the medium term, and positive effects are also expected from the tax reform.  

S&P notes it is important to continue efforts for structural reforms, strengthening of institutional capacities while at the same time consolidating sustainable fiscal policies.  

“Efforts towards our country’s EU accession will contribute to strengthening the institutional framework. The credit rating of a country shows the degree of risk of investing in it, and is one of the key indicators that potential investors take into account when making their decisions,” the Finance Ministry said.