Public investments to amount to 5% of Albania’s GDP during 2019-2021 period
The efficient use of Albania’s state budget is now provided for in the law, where it is clearly defined that investments will be designed according to needs.
But at a time when the government has “trumpeted” the “1 billion euro” major project, according to the macroeconomic and fiscal framework already adopted for the next three years, this major drive is not expected to bring great changes to capital funding.
So referring to this document, public investment is programmed to be kept at an average of about 5 percent of GDP each year.
This is considered an optimal level for supporting a high and sustainable economic growth in Albania.
Referring to the estimated real values, it results that for the next year the value of public investments will be at ALL 87.8 billion, for 2020 at 92.2 billion and for 2021 at 95.2 billion.
“Although fiscal policy will continue to be oriented towards consolidation in the medium and long run, the government’s budgetary policy to maintain a level of public investment at around 5% of GDP in 2019-2021 will stimulate the formation of gross fixed capital in the economy, essential to sustain relatively high levels of growth in the medium to long term,” reads the Macroeconomic and Fiscal Framework document.
But, along with these investments, some other projects are expected to have a great impact on the country’s economic growth.
According to finance experts, the accommodating monetary policy forecasted in the medium term, considering low inflationary pressures, will support private consumption and investment.
Thus total investment in the economy is projected to grow in real terms by an average of about 5.3% per year, with a slight acceleration in 2020 and 2021, creating an average contribution of about 1.5 percentage points per year.
*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.