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.