Director Dejan Pavleski as part of the economic team of the Government attended the press conference at which the Prime Minister Zoran Zaev and the Minister of Finance Fatmir Besimi presented the Plan for Accelerated Economic Growth for the period 2022-2026 adopted by the Government.
The Prime Minister of the Republic of North Macedonia, Zoran Zaev and the Minister of Finance Fatmir Besimi today presented the Plan for Accelerated Economic Growth 2022-2026, which the Government adopted today.
“The key goal is to create new jobs and stimulate the growth of the economy in our country, with new investments, 5% Gross Domestic Product growth and maintaining a stable public debt. The plan is inclusive and in-depth developed in communication with international financial institutions, partners, chambers, experts.
The accelerated growth plan has three main objectives:
1. The first goal is increased investment in the public and private sectors. Public investments in the amount of 4 billion euros are envisaged in the next five years and mobilization of additional 8 billion euros of investments from the private sector.
2. The second goal is accelerated growth, i.e. increasing the average economic growth rate from 2.5%, which was in the past 10 years to 5% average per year in the next 5 years as a target that we want to achieve.
3. The third goal is to ensure fiscal consolidation, i.e. reduction of the budget deficit and public debt.
Regarding the first goal, the plan offers an innovative approach to equity financing to accelerate economic growth, an approach that works successfully in the European Union. In addition to the planned public investments in the amount of 4 billion euros for the period 2022-2026, financed by the budget, IPA funds and international financial institutions, more funds and investments will be mobilized by the private sector.
The accelerated economic growth plan will support investment projects in the public and private sectors, which will mean improving the competitiveness of the economy and improving the quality of life, and will be concentrated in several priority areas such as green economy, digitalization, innovation and technological development, development of physical infrastructure and human capital, as well as social cohesion.
International development partners will help with financial support and technical assistance for overall successful implementation. In that regard, the Plan is complementary and harmonized with the other strategic documents of the Government, as well as with the Budget for 2022, which is in the final stage of preparation.
What I want to mention is that the capital investments, necessary for the economic development, are of special importance, and which are realized in conditions of continuous pandemic, ie they did not stop. For that purpose, the CAPEF mechanism is in function, which envisages rewarding the budget users with a high degree of execution of the capital expenditures. It is estimated that it can generate an additional 1.5 billion euros in capital expenditures in the period 2022-2026.
The realization of capital investments amounted to 14.2 billion denars from the start of the year until October 22, which is 57.4 percent higher than the same period last year.
The second goal of the Plan for accelerated economic growth is to increase the average economic growth rate from the average in the past 10 years from 2.5% to 5% average per year in the next 5 years.
This goal is already beginning to be realized, and the very growth of the Gross Domestic Product of 5.6 percent in the first half of this year, ie 13.1 percent only in the second quarter of this year is a confirmation that the economy is returning to the paths of rapid growth. .
Recently, the World Bank increased the forecast for GDP growth in North Macedonia in 2021, from 3.6 to 4.6 percent, which exceeds even our estimates for growth of 4.1 percent.
The activity of the private sector will increase, through the introduction of new ways of access to capital, instruments, funds and sources of financing, which mobilize several times more funds and investments from the private sector. This will increase the total investments, accelerate the growth of the gross domestic product and will accelerate the creation of new jobs.
Unemployment is now at 15.9%, which is the lowest level in recent Macedonian history.
According to the Plan, with the growth of investments, the employment rate is projected to increase to 54.3% in 2026, and the unemployment rate to enter the single-digit zone for the first time by 2026 of 8.6%.
The third goal is to ensure fiscal consolidation, ie reduction of the budget deficit and public debt.
Favorable macroeconomic developments will improve public finances, leading to fiscal sustainability, by reducing public and publicly guaranteed debt below 60% of GDP in 2026.
This plan will strengthen the conclusion that North Macedonia is a country with predictable conditions and climate for investors, because it contains the basic aspects that are of primary importance for domestic and foreign investors “said at today’s press conference the Prime Minister, Zoran Zaev.
More information at the following link: https://bit.ly/3jE0KKY