Economy NMacedonia: New optimistic fiscal strategy with forecast growth of 5.4% and unemployment...

NMacedonia: New optimistic fiscal strategy with forecast growth of 5.4% and unemployment of 8.6%

Фото: Bruno Kelzer on Unsplash

The new Fiscal Strategy for the period 2022-2024, with projections until 2026, is carrying strongly optimistic forecast about the development of the economy of North Macedonia. The economic growth rates are planned to above 5% and the unemployment rate at only 8.6%. Also, the average salary is planned to grow with an average rate of around 4%, the gross investments should be increased up to 36.2% in 2026, while the export will grow with an average rate of around 8.8%.

The Ministry of Finance of North Macedonia determined the Fiscal Strategy 2022-2024, with projections until 2026, aligning it with the previously revised fiscal strategy for prolonged period, with projections for 5 instead of 3 years.

“The state support through economic measures will continue in 2021. A gradual stabilization is expected of the global supply chains and growth of the foreign demand, which with the lowered pressure from the pandemic, will have a positive effect on the domestic economic indicators, the trade exchange, investments and spending. The process of mass immunization is expected to have a positive influence on the domestic economic subjects and the inclination toward investing and spending,” announced the Ministry of Finance.

The total inflow in the budget during the 2022-2026 period is planned to be at around 31.3% of the GDP, and the average participation of the total expenditures to be around 34.4% of the GDP. A budgetary deficit is expected to drop and to be 2.2% in 2026 i.e. 4.3% in 2022, 3.5% in 2023, 2.9% in 2024, 2.5 in 2025.