Euro devaluation hits the budget with lower income
19/09/2018 17:40
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The government’s finances are facing an almost contradictory situation. Although there is more economic activity, the state budget has less profit.
Official data from INSTAT show that during the first three months, the Albanian economy grew with 4.45%, which is the highest rate in a decade.
Statistics show that the economy has continued with a similar pace in the second trimester, led by industrial production and the tourism sector.
But total income in the public budget has increased with 7.3 billion ALL for the first seven months of the year, or just 2.9% compared to last year.
The Ministry of Finances says that one of the main reasons is the exchange rate. The devaluation of Euro has brought a 5 billion ALL loss in the customs.
However, there is a positive impact as well. Cheaper Euros have reduced the public debt that the government pays from the GDP.
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