Ohrid, 11 September 2026 (MIA) - We need to maintain the investment cycle we have had recently. We have consistently recorded growth of around and over three percent in 10 subsequent quarters, while in the latest quarter the growth rate is 4.3 percent. This shows we are moving on a good trajectory, said Finance Minister Gordana Dimitrieska-Kochoska at a panel discussion titled " From Eurozone Pressure to Fiscal Resilience: Budget Priorities, Private Sector Realities and Regional Lessons" held as part of the Ohrid 2026 Regional Conference.

Dimitrieska-Kochoska stressed that support for the investment cycle goes hand in hand with the implementation of a gradual fiscal consolidation which, she said, should be a priority.  

"The question is whether one should aim to have a budget deficit in line with projections. Is there perhaps a need for a slight deviation from what you have projected in order to support the investment cycle that spans over a longer period of time. And this was one of the biggest challenges we had as Finance Ministry during the drafting of the latest revision of the Budget. Our decision was of course to find a balance. On one hand, we will definitely shift part of the deficit upward, keeping in mind that the largest part of that deficit will go toward financing projects that will add additional value to the economy. But at the same time, we will also work carefully on the revenue side, because fiscal consolidation is not focused solely on expenditures," the Minister said.

The Minister noted that North Macedonia is one of the countries that had a very large budget deficit in 2020, but, she said, it failed to consolidate the deficit in 2021 and as a result the fiscal consolidation is now slower.  

"Fiscal consolidation must be a priority, because in the end it will also impact the credit rating, and interest rates in the future. Which means it needs to be a priority – but not at any cost in terms of the time period we will need to realize it. We should not rush in realizing a fiscal consolidation – a budget deficit under 3 percent and public debt under 60 percent – at the expense of disrupting investments," the Finance Minister stressed.

According to Dimitrieska-Kochoska investments are key for growth, with data showing they were the main driver of growth in the second quarter.  

"We have an investment cycle that we need to maintain and back as much as we can as a country. Is it enough? No, there still are certain structural problems in the economy, and perhaps we need to make certain changes here. Through the Development Bank, we are assisting the private sector. Perhaps certain things will be amended in the law on financial support so that we can support certain companies from certain sectors we believe should be strengthened because we cannot and our GDP cannot depend on foreign investors who came to the country 15 years ago – and it is a fact they are the largest engine creating our GDP. We are moving on a good path, but we still have work to do, and I believe in the coming period we will manage to improve these results as well," the Finance Minister said.

Dimitrieska-Kochoska assessed that the Growth Plan is also a significant instrument in the transformation of the economy, the fulfillment of which, she said, means a greater transformation of the administration, legislation, improving the overall legislation and state conduct, and bringing it closer to the European standard.

Photo: Ministry of Finance