The Ministry of Finance’s estimates show that economic activity in North Macedonia is set to decrease by 3.4% in 2020, due to the COVID-19 crisis, while the rate of inflation will amount to 0.2%, Finance Minister Nina Angelovska said at a press conference Monday. She underlined that the current economic situation is better than expected.
“The situation is developing better than estimated by the Finance Ministry more favorable scenario, which is a good sign. We’re still prepared for the worst-case scenario and have in mind the unpredictable nature of this crisis, which makes it more difficult to publish projections. It’s important to be prepared for everything and be ready to soften economic blows at any time to help the private sector and citizens,” Angelovska said.
State budget revenue in April 2020, she underlined, amounted to MKD 14.2 billion, a 20% decrease compared to the same month in 2019. The tax revenue in April totaled MKD 7.2 billion, 31% less than in April 2019, while contributions remained at the same level as last year and equaled MKD 7.2 billion. The realization of other state budget revenues (non-tax and capital revenues, donations) added up to MKD 1.5 billion, noting a 20% decrease.
“The Finance Ministry’s primary scenario estimates a 3.4% decrease in economic activity, with the worst coronacrisis effects expected in Q2,” Angelovska said.
Coronavirus preventive measures, she underlined, will impact the hospitality, transport, tourism, art, leisure and recreation sectors, as well as industry and construction sectors.
Angelovska said that measures have been taken to mitigate the effects of the coronavirus on businesses and labor market.
The Finance Ministry’s official projections predict a 16.8 percent drop in export, private consumption is expected to fall by 3.3 per cent and gross investment by 9.6 per cent on a realistic basis. A positive contribution is expected from public spending, which is projected to grow by 2.7 percent, and imports of goods and services fell by 15.8 percent on a realistic basis.