European Commission report/ Albania second in the Balkans for high level of public debt

2026-01-26 07:28:57, Ekonomi CNA

European Commission report/ Albania second in the Balkans for high level of

Despite the decrease in recent years, Albania is positioned among the countries with the highest level of public debt in relation to Gross Domestic Product (GDP) in the Western Balkans region, according to the latest quarterly data from the European Commission.

In the third quarter of 2025 data, Albania's public debt reached 53.5% of GDP, ranking the country second in the Western Balkans, only behind Montenegro, where this indicator marks 58.6% of GDP.

The comparison with other countries in the region reflects significant changes in fiscal approaches and macroeconomic developments from the previous period. North Macedonia recorded a public debt of 50.3% of GDP, while Serbia, which has a larger economy, recorded a debt of 43% of GDP. Bosnia and Herzegovina and Kosovo resulted in lower levels, at 26.4% and 16% of GDP, respectively.

The EC report highlights that public debt remains one of the main indicators of macroeconomic sustainability, reflecting the fiscal performance of countries and their capacity to manage public spending in challenging periods.

In Albania, the level of public debt remains above the average of several economies in the region, although below the level of countries with a higher fiscal burden such as Montenegro.

In its analysis, the European Commission emphasizes that public debt levels have been influenced by a combination of factors, including fiscal measures taken during periods of economic recovery after crises and the need to support public services.

While consumption and domestic demand continued to be the main contributors to economic growth, maintaining debt at sustainable levels remains a challenge for candidate countries, requiring a careful balance between investment and fiscal discipline.

For the region's small economies, global external conditions, debt service costs, and expansion of capital spending are elements that directly affect public debt levels.

The report emphasizes that for countries aiming for closer integration with the European Union, debt management and strengthening the fiscal structure are essential for ensuring long-term macroeconomic stability./ Monitor.al