site.btaEconomic Situation Becomes Focus of North Macedonia’s Election Campaign

The economic situation in North Macedonia took centre stage in the country’s election campaign on Wednesday. At a news conference held at the headquarters of the opposition Social Democratic Union of Macedonia (SDSM), party leader Venko Filipce voiced concern over what he described as “dramatically low implementation” of capital investments, which should be driving the economy.

Filipce said that only 43.78% of planned capital expenditures had been realized as of September – the lowest rate in the country’s history, in his words. He warned that the year would be “yet another lost one” for capital projects, with forecasts suggesting implementation of around 55% by year-end. According to him, this meant that funds intended to create jobs and stimulate growth would remain unused, which in turn showed that the government lacked the capacity to implement its own projects and plans.

He also cited data indicating that by the end of 2025, the state budget would face a shortfall of EUR 1.4 billion, and called on Prime Minister Hristijan Mickoski to explain how the gap would be covered and whether new borrowing would be required.

In response, North Macedonia’s government press service issued a statement saying that the national budget was stable and liquid, and that “all obligations to citizens, businesses, and institutions are being met regularly and on time”. The statement said that revenue and expenditure execution was proceeding according to plan and annual dynamics, with the highest levels of activity traditionally registered in the final quarter of the year.

The government said it was pursuing a disciplined fiscal policy, with the 2025 budget carefully planned and strategically focused on capital investment, economic growth, and social stability. It noted that the deficit was under control, public debt had been stabilized, and borrowing remained within legal limits and directed toward development rather than populism.

The press release further stated that the projected budget deficit for 2025 was 41.4 billion denars, which is 3.3 billion less than in 2024, while implementation so far stood at 36.4 billion denars – in line with projections. The public debt as of July stood at 58.7% of GDP and was expected to be lower than the forecast 62.1% by the end of 2025, the government added.