Malaj stated that the 2025 draft budget supports sustainable economic growth and fiscal consolidation, ensuring support for the country’s socio-economic development.

He stated that this growth will primarily be driven by domestic demand, including an increase in consumption and total investments in the economy. “At the same time, we expect that net foreign demand will also contribute positively, particularly due to the increase in exports, with a special role for the tourism sector,” Malaj added.

Regarding the medium-term risks, the minister informed that they remain balanced and manageable.

“Currently, the economy is in a good moment, with a growth rate of 3.9% in the first half of the year, primarily driven by services and construction. Expectations for the third quarter are also positive, which is why we have revised our economic growth projections from 3.7% to 3.9%. Unemployment has decreased, while employment and wages have increased,” said Malaj.

He noted that inflation in the first nine months of 2024 has fallen to 2.3%, largely due to the strengthening of the national currency. The strengthened exchange rate is linked to tourism, remittances, and foreign direct investments.

“The 2025 draft budget projects a surplus of 0.5 billion lek by the end of the year. For 2025, we expect the debt level to decrease to 55.8%, down from the 56.3% anticipated at the end of this year. We forecast economic growth of 3.9%, driven by consumption, services, and increased exports. The risks remain balanced and manageable,” said Malaj.

The minister announced that budget revenues for 2025 are projected to reach 754.6 billion lek, or 28.8% of GDP, which is approximately 40.6 billion lek more than in 2024. Meanwhile, public spending is expected to exceed 8 billion euros.

/sm/