English
Credit rating agency Fitch has affirmed Macedonia’s credit rating at “BB+” with a stable outlook, acknowledging positive economic growth prospects, strong investment activity, and the reform process linked to European Union accession, the Ministry of Finance reported.
In its latest report, Fitch notes that the Macedonian economy is demonstrating resilience and that real economic growth accelerated to 4.3% in the second quarter of 2026, driven by strong performance in the construction and manufacturing sectors. The pace of public investment was also viewed positively. Capital expenditures for the January–July period rose by 40% year-on-year—representing 46% of the revised full-year target—which the agency attributes to the robust implementation of major infrastructure projects, including Corridors 8 and 10d.
Fitch expects economic activity to continue being supported by strong public investment and private consumption. The agency identifies further potential for higher medium-term growth through the continuation of infrastructure projects and the implementation of reforms under European Union instruments. Fitch highlights favorable governance indicators and higher GDP per capita—relative to peers with comparable credit ratings—as key factors supporting the credit rating, alongside a commitment to the European Union accession process, which is viewed as a significant reform anchor in the medium term.
Regarding the fiscal framework, Fitch notes the full implementation of the Budget Law starting in 2028 and the need for gradual fiscal consolidation, projecting a reduction in the deficit over the medium term. The agency also notes reform efforts aimed at improving revenue collection, including the introduction of e-invoicing.
Fitch notes a relatively favorable general government debt structure, given the significant share of multilateral and bilateral creditors, and expects gross general government debt to stabilize at an average of 52.7% of GDP during the 2026–2028 period—remaining below the established threshold. The affirmation of the “BB+” credit rating with a stable outlook sends a significant signal to international financial markets and investors regarding the stability and prospects of the Macedonian economy, particularly amidst heightened global economic and geopolitical challenges.