This year we projected growth of 4.1 percent and an average annual growth of 5.4 percent for the next five years. Following the positive economic trends during the year, including the third quarter, we will probably have new projections for higher GDP growth for 2021, said Finance Minister Fatmir Besimi.
In order to ensure that this will not remain just a wish, Besimi states in a column, we have prepared a Plan for financing the economic recovery and accelerating growth, while maintaining fiscal stability by mobilizing capital from the private sector, in addition to the funds provided by The budget. At the same time, we are focused on fiscal consolidation in the medium term by reducing the budget deficit and public debt and reducing them to 3 percent and 60 percent, respectively, as part of GDP.
According to the Minister, we responded to the pandemic that affected the world, and had a great impact on our country, with measures to fight COVID-19, to protect lives and save the economy. Therefore, last year we allocated a fiscal stimulus totaling 11 percent of GDP through various measures for the health sector, vulnerable categories of citizens, protection of jobs, assistance to businesses to survive the crisis. Thus, we managed to mitigate the decline in GDP by 4.2 percentage points, which would otherwise reach 8.7 percent. According to the official report from the State Statistical Office, the second quarter GDP increased by 13.1 percent compared to the same period last year, and thus the growth rose above zero in the positive zone for four consecutive quarters with negative rates of GDP growth, which methodologically and officially ended the economic crisis, writes Besimi in the column for the financial forum – SEFF 2021: Economic recovery and acceleration of growth after COVID-19.
