Fitch affirms North Macedonia at BB+ with stable outlook
Fitch Ratings has affirmed North Macedonia's credit rating at BB+ with a stable outlook, recognizing the positive prospects for economic growth, strong investment activity and EU-related reform process, the Ministry of Finance said.
In its report, Fitch notes that the economy has largely been resilient to the impact of the US-Iran war, adding that real economic growth rose to 4.3 percent in the second quarter of 2026, driven by robust performance in construction and manufacturing, CE Report quotes MIA.
According to Fitch, capital expenditure in January-July accelerated by a substantial 40 percent, which is equivalent to 46 percent of the revised full-year target, reflecting strong execution of the flagship 8/10d corridor projects.
Fitch expects growth of 3.2 percent in 2026 to be supported by strong public investment and private consumption, while continued execution of reforms under the EU's Reform and Growth Facility and infrastructure projects pose upside to the medium-term potential growth rate of 3 percent.
North Macedonia's 'BB+' rating is supported by more favourable governance indicators and higher GDP per capita than peer medians, commitment to an EU accession process that acts as a reform anchor over the medium term and a record of credible and consistent monetary policies that underpin the longstanding de facto exchange rate peg to the euro, notes the agency.
The Gross general government debt (GGGD) was 51.6 percent of GDP at the end of 2025, and Fitch expects it to stabilise at 52.7 percent on average over 2026-28.
The credit affirmation represents a significant signal to the international financial market and investors on the stability and prospects of the Macedonian economy, especially amid circumstances of rising global economic and geopolitical challenges.
The Ministry of Finance continues to implement policies aimed at sustainable economic growth, higher realization of capital investments, structural reforms, and gradual fiscal consolidation, with the aim of strengthening the economic fundamentals, competitiveness, and people's standard, the press release reads.
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