Page 111 - bne IntelliNews Southeastern Europe Outlook 2025

6.0 Budget and Debt Outlook 6.1 Budget and Debt – Albania
Albania’s economy is expected to grow by 3.9% in 2025, driven by domestic demand, private consumption, and investment, according to the budget presented by Finance Minister Petrit Malaj in October and approved in early December.
The draft budget includes over €8bn in public spending focused on debt reduction and preparation for EU integration.
Malaj highlighted that the 2025 budget seeks to balance growth with fiscal stability, aiming to keep the national deficit at 2.6% of GDP and reduce public debt to below 56% of GDP.
Public investments, averaging 6.1% of GDP from 2025 through 2027, will target projects aligned with the EU Growth Plan for the Western Balkans.
Revenue projections for 2025 total ALL754.6bn (€7.7bn), or 28.8% of GDP, marking an increase of around ALL40.6bn over the revised 2024 figures.
Planned expenditures are set at ALL822.7bn, or 31.4% of GDP, reflecting a ALL51.4bn rise from 2024.
Despite the increased spending, the government does not intend to introduce new tax measures, instead focusing on improved tax administration to support areas such as education, healthcare and infrastructure.
Albania plans to issue an €600mn Eurobond in early 2025. The plan, announced by Malaj, is aimed at managing maturing debt from a previous 2018 Eurobond while financing long-term investments to foster economic stability.
The goal is to refinance the 2018 Eurobond, which will mature in 2025, with €367mn outstanding. By covering more than half of the Eurobond’s remaining value, the government intends to reduce immediate repayment pressures and support ongoing economic initiatives.
Albania issued its previous Eurobond in November 2021, to support its
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