January 30 (SeeNews) - Standard & Poor’s Credit Rating Agency affirmed North Macedonia's credit ratings at BB- with a stable outlook, the country's finance ministry said.
According to Standard & Poor's, the stable outlook reflects the expectation that the government's proactive policy-making, as well as the moderate levels of public debt, will mitigate the various risks associated with the war in Ukraine, the ministry said in a statement on Saturday.
The agency noted that the crisis will continue to weigh on the country's economic development this year as well, but growth will likely return to pre-crisis levels in the medium term.
"Private consumption will continue to drive growth, supported by accommodative monetary policy and wage growth. Public investments- such as the Corridor 8 and Corridor 10 highway projects- will also be a key source of economic growth," the agency said, as quoted by the finance ministy.
The budget deficit is expected to be lower than in 2022, at 4.1% of GDP, which is lower than the government's projections of 4.6% of GDP. According to the agency, the new budget law will contribute to the country's efforts for fiscal consolidation.
In addition, foreign direct investments in North Macedonia are likely to rebound, and inflation and pricing pressures are expected to decrease.