Public investments in the amount of EUR 4 billion over the next five years, which are set to mobilize further EUR 8 billion invested in the private sector, increase of the economic growth rate, lowering the unemployment rate to single digits and cutting the public debt below 60 percent of the GDP are the main goals of the Accelerated Growth Plan 2022-2026 that the Government adopted on Tuesday.
The Plan targets a rise of the average annual growth rate from 2.5 percent to 5 percent in the next five years, increase of the employment rate to 54.3 percent and a drop of the unemployment rate to 8.6 percent by 2026, along with a budget deficit at 2.2 percent of the GDP.
Prime Minister Zoran Zaev and Finance Minister Fatmir Besimi said the plan has been adopted through an inclusive procedure that involved international financial institutions, chambers and experts. “The Plan offers an innovative approach to capital towards financing the accelerated economic growth, a successful approach used across the European Union. Besides the planned public investments in the amount of EUR 4 billion, funded by the budget, IPA funds and international financial institutions, more funds and investments would be mobilized from the private sector.
The Plan will support public and private investments projects resulting in improvement of competitiveness and quality of life. Projects are focused on priority fields such as green economy, digitization, innovations and technology development, development of physical infrastructure and human capital, as well as social cohesion,” said PM Zaev. He added that capital investments are of exceptional importance, which realization has not stopped in the period of the pandemic, standing at Mden 14,2 billion (EUR 230 million) by the end of October, a 57.4-percent increase compared to last year.
“This plan is set to reaffirm that North Macedonia is a country with a predictable environment for investors, since it contains the fundamental aspects of primary importance for both domestic and foreign investors. The plan includes the financing sources, the areas and sectors targeted for investments, financial instruments attractive for investors, a map of realization but also measures for mitigation and management of possible risks during implementation,” said Zaev.
Minister Besimi said the plan would not be only a dead letter since an Action Plan foresees precise deadlines but also innovative solutions. “The plan projects an accelerated economic growth and increasing competitiveness of our economy, reaching the EU average in the coming period,” noted Besimi. The first green bonds are also in the pipeline, towards ensuring increased financing for improved energy efficiency, less pollution, proper waste management, sustainable agriculture and other environment-friendly projects.
Source:MIA
