Albania’s 2009 Budget Deficit Should Be Reduced to 3.0% - 3.5% /GDP – IMF

“To further macroeconomic stability, it is imperative to avoid fiscal stimulus in 2009. At the current juncture, we recommend limiting the 2009 deficit,” the IMF said in a statement after the end of a one week mission to Albania that focused on the next year budget framework and this year’s economic performance of the western Balkan country.

Albania targets a 2008 budget deficit equivalent to 5.2% of GDP. The 2008 GDP is projected at 1,075.71 billion leks ($12.7 billion/8.64 billion euro) in nominal terms, up from 982.2 billion leks last year.

However, at a joint news conference earlier on Tuesday Albania’s Finance Minister Ridvan Bode said Albania plans a budget gap for next year equivalent to 4.2% of GDP. Next year's budget is yet to be discussed by parliament.

The 2008 deficit could come in below the expected 5.2% of GDP, because capital spending in 2008 still falls short of the budget plan, the IMF said.

The IMF welcomed the start of the privatisation process of the electricity distribution unit of power utility KESH, but once again urged Albania to improve bill collection.

(1 euro= 123.7699 Albanian leks)