The International Monetary Fund in its latest report on the country predicts a 4 percent decline in the Macedonian economy. According to the IMF, the key to this situation is the coronavirus pandemic, as well as the possible spillover effects of the global recession on the country.

The economic situation in Macedonia has deteriorated significantly due to the Covid-19 pandemic. Real GDP is expected to fall by 4 percent as a result of declining domestic and foreign demand.

This, together with the negative shocks of trust and spillovers of global financial channels, created an urgent need for a balance of payments. The elections scheduled for April 2020 have been postponed, meaning the interim government will remain in place for the months to come, the report said.

According to the IMF, Macedonian authorities responded quickly with temporary support for fiscal policy to limit the social and economic impact of the health emergency by protecting companies’ liquidity, preserving jobs and providing social care for unemployed and vulnerable households.

The Fund is ready to support Macedonia in the fight against the pandemic and to help the economy recover, the report added.