Post by account_disabled on Mar 3, 2024 0:50:40 GMT -5
The Albanian economy has already entered a previously unexplored territory. The debt, compared to what the economy produces in a year (Gross Domestic Product-GDP) is expected to reach 83% at the end of this year, according to the forecasts of the International Monetary Fund (IMF). Not only does the country enter the list of 10-11 countries with the highest debt in Europe, but this is also a negative record that the country has never seen. The increase in borrowing was necessary, at a time when the country faced two consecutive disasters, the first the devastating earthquake of November 26 and the second, the Covid-19 crisis, which engulfed the entire globe.
Post-earthquake Cambodia WhatsApp Number Data reconstruction (which is still proceeding at a slow pace) and business rescue packages eroded budget spending, at a time when revenues shrank rapidly as a result of the months-long quarantine and accompanying crisis. Again, the question marks are big: - First, even in good times, the government did not manage to reduce the debt. It remained at the end of 2019, at around 70% of GDP, if arrears are included, almost the same as in 2013, when it is known that for a country with a low level of competitiveness like Albania, the stable level is at maximum 60%. The high debt did not enable the government to have a large support package, which according to the IMF was actually the lowest in Europe.
Low support didn't even stop job losses in the first 6 months of the year, with 50,000 fewer people employed. -Secondly, in recent years, the government has entered into a dangerous relationship with the so-called Public-Private Partnership (PPP) projects, which are actually hidden debt, since the finances only calculate the amount that must be paid in the current year. Off-balance sheet liabilities for PPPs for the remaining period are around 9.5% of GDP, which is the highest in Europe. The second country after Albania is Slovakia, with about 3% of GDP, while for other countries this exposure does not exceed 0-1% of GDP.
Post-earthquake Cambodia WhatsApp Number Data reconstruction (which is still proceeding at a slow pace) and business rescue packages eroded budget spending, at a time when revenues shrank rapidly as a result of the months-long quarantine and accompanying crisis. Again, the question marks are big: - First, even in good times, the government did not manage to reduce the debt. It remained at the end of 2019, at around 70% of GDP, if arrears are included, almost the same as in 2013, when it is known that for a country with a low level of competitiveness like Albania, the stable level is at maximum 60%. The high debt did not enable the government to have a large support package, which according to the IMF was actually the lowest in Europe.
Low support didn't even stop job losses in the first 6 months of the year, with 50,000 fewer people employed. -Secondly, in recent years, the government has entered into a dangerous relationship with the so-called Public-Private Partnership (PPP) projects, which are actually hidden debt, since the finances only calculate the amount that must be paid in the current year. Off-balance sheet liabilities for PPPs for the remaining period are around 9.5% of GDP, which is the highest in Europe. The second country after Albania is Slovakia, with about 3% of GDP, while for other countries this exposure does not exceed 0-1% of GDP.