Public debt, World Bank concerned

Public debt, World Bank concerned

Albania remains one of the countries with the highest level of public debt compared to countries of the region, presenting a serious problem for economic performance. 

According to data from the Ministry of Finance public debt is declining, down to 69.9% of GDP from 72.3% in December 2016.

However, the World Bank recommends that fiscal consolidation continue by particularly reducing personnel, maintenance and local government spending. 

According to a World Bank report, the ratio of public debt in the Albanian economy should fall below 60% of Gross Domestic Product by 2022.

Two years ago, the Albanian Parliament adopted a law which forces the government to lower the debt year after year. 

But according to this institution, the realization of PPP projects remains a concern as it will directly affect the debt indicator, being in itself a hidden debt.

The World Bank suggests more caution to ensure that any investment is cost-effective and reduces the impact, as well as to undertake a series of reforms to boost economic growth, such as improving the climate of doing business, the realization of legal and property reforms and improving the skills of the labour force.

EMISIONET