Fitch Ratings Inc. warns of possible negative consequences of the project for the construction of highways along Corridor 8 and 10d, writes Bloomberg Adria in Macedonian.
The agency confirmed the country’s credit rating, BB+ with a stable outlook. This means that the country’s rating is not yet investment grade.
Fitch projects that this year the GDP will grow to 1.9 percent annually. Acceleration to 3.5 is expected for the next year, and to 3.9 percent in 2025. This growth will be due, according to Fitch, to net inflows from foreign direct investments.
Apart from the positive effect, Fitch also warns of the possible negative consequences of the highway construction project along Corridor 8 and 10d.
“The scope for additional spending related to the 2024 election is limited by the rules of the Budget Act, but Fitch sees greater fiscal risks from potential overspending on the Highway 8/10 project (expected to cost about two percent of GDP annually during the five years of construction)”, reads the statement.
“We forecast a deficit of 3.8 percent in 2024 and 3.5 percent in 2025 as revenues rise in line with recent tax reforms, increased collection and stronger economic growth,” added Fitch.