Government admits reality

After being obliged to lower the prediction of the economic growth from 5.5% to 5% for the newly approved macro-economic and fiscal plan, the government has corrected the growth predictions and the growth pace for the three years to come.

According to the document, the economic growth during 2012 will be 5%, from 6% that was predicted in the beginning of the year.

Even during 2013, the economic growth prediction has decreased with 1.2 percentage points, making it again 5%. For 2014, the prediction goes from 6 to 5.2%.

But these new predictions are still very optimistic, compared to the reality. The government declared in the beginning of the year that the economic growth would be 5.5%, despite the contradictions from the International Monetary Fund.

But after seeing that the first semester of 2011 was too slow, they were obliged to reduce this prediction to 5%, and the government was forced to review the budget. But even the 5% seems very optimistic.

Bank of Albania declared one month ago that their assessment, based on the developments of the first semester, is that the Albanian economy will grow from 3 to 4%, same as in the last year.

The shrinking of the economic growth means that the family revenues will grow slower than their normal pace before the crisis.

Besides this economical slowdown, the public finances are also endangered, making it even more difficult for the decrease of the public debt, which the government expects to reach 58.6% by 2013, or 0.2% more than the last year, despite the fact that they publicly vouched to reduce it.

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