SKOPJE, Feb. 20 (Xinhua) -- Standard and Poor's (S&P) global rating agency has confirmed North Macedonia's credit rating at BB- with a stable outlook, the country's Finance Ministry said in a press release on Saturday.
According to the press release, S&P expects the country's economy to get back on the track of growth this year and overcome the crisis caused by COVID-19 pandemic.
"S&P underlines the efforts of the government in strengthening the public finance system, including the new law on budgets, which anticipates major reforms regarding budget planning and implementation control," the press release read.
S&P pointed out that after a sharp fall in the second quarter of 2020, North Macedonia's economy rebounded by the end of the year, emphasizing that the industrial production in December 2020 registered a positive result for first time since the beginning of pandemic crisis.
The rating agency cited the recovery of export activity as well as public and private consumption as the driving force for the growth in 2021, while their expectations are that in 2021 the growth will stand at 3.6 percent.
"S&P said that North Macedonia is integrated in the global supply chains, especially in the automotive industry. The recovery of automotive industry, as well as the economies of the country's largest trading partners like Germany, will contribute to the recovery of North Macedonia's economy as well," added the press release.
Moreover, S&P expects the government to invest in infrastructure between 2021 and 2024, aimed at improving transportation, healthcare and education with investments up to 3.2 billion euros (around 3.87 billion U.S. dollars) or almost 30 percent of the projected gross domestic product for 2021.
Regarding the budgetary deficit, S&P said it expects it to decrease in 2021 to 4.9 percent and to gradually continue to decrease each year, according to the government's forecast. Enditem
