TIRANA, Feb 28 /ATA/ Albania has managed to reduce the level of public debt over the past decade by about 16%, reaching 54.7% by the end of 2024, down from over 70% in 2013. 

Minister of Finance Petrit Malaj noted that economic growth and the maintenance of a primary balance are the key factors that led to this outcome. 

“According to Malaj, a key factor in reducing debt is economic growth and effective management of budget expenditures, while simultaneously maintaining a positive primary balance.” 

According to him, Albania reduced its public debt by 16% over the past decade, while public debt in neighboring countries has increased by approximately 3.2%. 

The Minister emphasized that Albania is performing significantly better than the countries in the region. 

“The reduction of Albania’s debt in the last decade is around 16%. From over 70% at the end of 2013, it has decreased to 54.7% of GDP by the end of 2024. If we compare this with the countries in the region, in this decade, Albania’s debt level has decreased by about 16%, while in the Western Balkans, there has been an increase of about 3.2%. We are clearly performing way better than the countries in the region,” he said. 

The Minister also noted that the appreciation of the local currency against the euro and the dollar has had an impact of about 1%.  “The debt composition breakdown shows that 43% is foreign debt, denominated in foreign currencies, while more than 50% is domestic currency debt. Over the past three years, the exchange rate has certainly contributed to the reduction of debt, with its impact for 2024 estimated at around 1%. However, the key drivers over the past decade have been economic growth and the maintenance of a positive primary balance, which have directly influenced the reduction of the debt level,” stated Minister Malaj.