Erosion of fiscal transparency and discretionary policies can lead to unexpected increases in debt, with adverse financial and economic consequences, as was the case of RNM context in the past decade; The 2020 Covid-19 pandemic caused additional strain on the public debt caused by the need for financing the negative shock impact, coupled with the packages for economic relief and aid.

  • Public debt is on an unsustainable path, with annual deficits adding to the debt at a pace exceeding the rate of economic growth
  • The public debt stabilizing primary balance is projected at negative 0.5%
  • The fiscal policies are continuing towards the increasing public debt-to-GDP ratio in the midterm plans without significant government policies for consolidation
  • The indicative threshold of public debt-to-GDP over 50% is way passes and topped over

The full brief: The Galloping Public Debt of Macedonia. Can we hope for sustainability?