The budget is filling up according to plan and revenue stands at a higher level compared to the pre-crisis period in 2020. The budget is stable in Q1 2021 due to anti-crisis measures, as well as the trust demonstrated by the business community, which has allowed the economy to follow logic, Prime Minister Zoran Zaev told a joint press conference with Finance Minister Fatmir Besimi on Thursday.
According to him, some 70 measures have been implemented in North Macedonia thus far, providing EUR 860 million for citizens and the economy, i.e. 82% of the budget for this purpose. He added that the government’s stimulus package significantly softened the economic blow.
The Prime Minister reiterated that 90.1% of the first set of economic measures have been implemented, while those of the second set have been fully enforced. The implementation of the third set to measures, he added, stands at 75.4% and those of the fourth – 72.7%.
Moreover, Zaev stressed, total implementation of measures has the potential to reach 99%.
According to the PM, if certain measures weren’t enforced, such as salary subsidies, payment cards, etc., private spending would have registered a -11.8% drop instead of -5.6% in line with State Statistical Office data.
“All sets of anti-crisis measures supporting the economy were focused on citizens, their jobs, social security, solidarity, mitigating the economic effects of the coronavirus and economic growth,” Zaev said, adding that 21 of the 70 measures, worth EUR 30 million, are currently being implemented, while seven measures, standing at EUR 150 million, will hopefully be approved by MPs soon.
He noted that the economy is recovering, as confirmed by increase of export, trade, crediting and the average salary.
In January 2021, export registered 15.4% growth on annual level and import went up 5.3%, which led the trade deficit to drop by 29%.
Moreover, domestic trade increased by 0.8%, the average salary rose by 2.7% and total loans registered an annual growth of 4.4%.
The unemployment rate, Zaev underlined, has gone significantly down, while employment climbed.
The Prime Minister underlined that in line with latest macroeconomic and fiscal trends and projections at global level, the domestic economy is set to register economic growth in 2021 and overcome the shock caused by the pandemic.
“Global economic recovery is expected to further increase demand, which will impact export and domestic spending and result in economic growth. Economic growth projections stand at 4.1%, export is expected to increase by 14%, gross investments by 7.7%, private spending by 3.5%, public spending by 4.3% and employment by 1.9%,” Zaev told the press briefing.
According to him, the recovery trend confirms that the Macedonian economy is alive, stable and dynamic and that despite challenges, 2021 will be a year of economic recovery, growth and development.
Moreover, he talked about the mid-term strategy for accelerating growth and doubling rates compared to the past decade’s average, adding that the plan for financing accelerated growth is part of that strategy. It entails realization in the next four years of public capital investments standing at EUR 4 billion, with the potential to increase and contribute to rapid growth of the Macedonian economy.
Zaev also said that revenue in the first three months of 2021 stands at 48,549,000,000, i.e. 22.8% of the total forecasted amount for 2021 and 4.4% more than in the same period in 2020, before the onset of the pandemic. Tax revenue is also up by 5%, while tax collection by 6.2%.
