Economic and Fiscal Consequences of the Covid-19 Pandemic: The Case Study of North Macedonia

Abstract

This paper aims to analyze the impact of Covid-19 on economic and fiscal consequences in North Macedonia. In addition, the paper assesses the effects of economic and fiscal packages implemented by the Government of the country. The study uses secondary data in order to find out the real consequences caused by Covid-19 pandemic in the economy of North Macedonia. The findings reveal that Covid-19 pandemic produced negative economic and fiscal consequences during 2020 in all sectors. Moreover, at the end of 2020, the real sector of the economy recorded a 4.5% decline in GDP, the fiscal deficit achieved a level of -8.1% of the GDP. The findings of the paper show that government assistance through various packages partly affected the reduction of negative economic consequences of Covid-19.