Standard & Poor’s confirms FYR Macedonia’s BB-/BB credit rating and stable outlook

S&P has confirmed FYR Macedonia’s BB’s credit rating, with a stable outlook. The report contests that the political crisis has been overcome with the formation of the new government and expects policy continuity. It also plans for improved confidence and intensification of economic growth.

The economic growth for 2017 was revised to 1%, due to the negative GDP trends in the first half of the year. However, it is estimated that this decline is temporary and that higher economic growth awaits at the end of the year. The average GDP growth between 2018 and 2020 is expected to be around 3%.

The expected budget deficit in 2017 is about 3% which is in line with the deficit estimated in the rebalance of the budget. The report also notes the persistent budget deficits in previous years but expects average budget deficit of 3% of GDP over the next four years. Additionally, the budget deficit is estimated to account for 46.5% of GDP in 2017.

S&P has suggested more resource-driven reforms which would increase effectiveness and accountability of public institutions.

Elena Kostovska
Eurofast Global, Skopje Office
+389 2 2400225

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