On Thursday, Albania's Finance Ministry said it expects economic growth to accelerate to 5.5% next year from the 4.1% forecast for 2010. Albania, one of Europe's poorest countries, posted an 8.0% increase in economic activity in 2008 and a 3.3% growth last year. The average inflation is seen at 3.0% in 2011, stable from this year's projection. The country had an annual average inflation rate of 2.2% last year, the ministry said in a statement, quoting the 2011 budget bill draft.
In 2011, the government in Tirana will target a budget gap of 3.5% of the projected gross domestic product (GDP), or 46.8 billion leks ($458 million/336 million euro) in nominal terms, up from 3.1%, or 38.1 billion leks, this year. The 2011 budget revenue is expected to be 8.6% higher on the year at 362.223 billion leks, including 332.8 billion leks in tax revenue. Outlays are projected to rise 10% to 409 billion leks.
"Consolidation of public finances, stabilisation of overall price levels, as well as the reduction of the current account deficit represent the key goals of the country's coordinated fiscal and monetary policies," the ministry said in a statement. Albania's government will aim to cut public debt to 59% of GDP next year from the 59.5% of GDP projected for 2010. Its main medium-term goal is to cut it to 54% of GDP by 2013.
Infrastructure, education and health care will be priority areas for public spending next year, the ministry said. The ministry projects a 12.5% jobless rate in 2011 compared to an estimated 13.6% for this year. Earlier this month, the International Monetary Fund said it expected Albania's economy to expand by 3.0% in 2010 and by 3.5% next year but warned that high public debt is threatening macroeconomic stability.
News source: Balkans.com link: article
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