SKOPJE, May 16 (Xinhua) -- Rating agencies Fitch and Standard & Poor's reaffirmed the credit rating for North Macedonia with BB+ and BB-, respectively, the Finance Ministry said in a press release on Saturday.
Fitch evaluates North Macedonia with BB+ with a negative outlook due to the global pandemic, while Standard and Poor's with BB- with a stable outlook, said the Finance Ministry.
As a result of the COVID-19 crisis, both credit agencies project a slow-down of the global economy, predicting a contraction of the economic results in 2020 and recovery in the gross domestic product (GDP) growth in 2021.
For North Macedonia, Fitch forecasted a contraction of the economy by 4.2 percent in 2020 as a result of the lockdown measures and 5.1 percent GDP growth in 2021, while Standard & Poor's forecasted a contraction of the economy by 5 percent in 2020 and growth by 3.8 percent in 2021.
"The rating agencies noted the measures taken by the government aimed at preserving jobs, supporting the most affected industries, as well as soft regulatory measures," read the press release.
Finance Ministry added that both reports stated that the measures taken by the authorities will contribute to the increase of the budget deficit, which is estimated to raise government debt to 50 percent.
"Fitch and Standard & Poor's rate the banking sector in North Macedonia as stable, as well as the domestic currency, which has a fixed euro exchange rate," said the Finance Ministry. Enditem
