Standard & Poor’s confirms North Macedonia’s rating: “BB-” with a stable outlook

The Ministry of Finance announces that the international rating agency Standard & Poor’s has confirmed North Macedonia’s credit rating at “BB-“, with a stable outlook, as Reporter in Skopje reports. In its latest report, the agency assesses that the prospects for economic growth, the moderate level of public debt and the stable debt-servicing costs soften the risks associated with high fiscal deficits.

According to the agency, economic growth is expected to reach about 3.6 per cent in 2026 and 2027, driven by the high level of public investment and stable domestic consumption, despite the negative economic effects from the war in the Middle East, above all through higher energy prices. As key drivers of growth, Standard & Poor’s singles out the accelerated implementation of large infrastructure projects, especially Corridors VIII and Xd, which contributed to investment growth of over 9 per cent in the first half of 2026; a similarly high level of investment activity is also expected in the second half of the year.

According to the agency’s assessment, growth will also be supported by resilient private consumption, driven by improvements in the labour market, rising wages and pensions and growth in households’ disposable income. The agency expects the investment cycle to continue in the coming years, with average economic growth of about 3.3 per cent in the period 2027–2029.

On public finances, Standard & Poor’s expects gradual fiscal consolidation in the period 2027–2029, with an average budget deficit of about 3.4 per cent of GDP. The high level of public investment, the financing of infrastructure projects and the liabilities of state enterprises, according to the agency, will affect the level of debt, which is expected to be around 57 per cent by 2029, while debt-servicing costs are assessed as stable. The report also notes the Government’s unimpeded access to international capital markets, mentioning the issuance of two eurobonds of 500 million euros each in January 2026.

According to the agency, a sustained improvement in fiscal performance, a sustained reduction in net public debt and stronger economic growth would have a positive impact on the country’s credit rating. The agency also notes the Government’s commitment to the European integration process, which it assesses as an important driver of medium-term structural reforms. Standard & Poor’s assesses North Macedonia’s credit rating twice a year; the rating is an important indicator for investors and international financial markets in assessing a country’s credit risk.