After two consecutive shocks received by the economy, such as the November 26 earthquake and the coronavirus (Covid-19) infection, public debt increased at historic levels exceeding 80% of gross domestic product (GDP) in the first six months of the year, as a necessity to respond to the crisis.

According to official data from the Ministry of Finance, the total stock of public debt reached Lek 1.26 trillion, or 80.02% of GDP, in the first half of the year, up from about 65.8% of GDP at the end of 2019.

Of the total debt stock, about 40.4% of GDP is domestic and 39.6% is external debt. The biggest impact on debt growth comes from the issuance of the new Euro 650 million Eurobond which will cover a series of investments such as deficits in revenues from the latest fiscal policies undertaken by the government regarding profit tax and value-added tax (VAT), causing external debt to increase by Euro 687 million, while domestic debt by Euro 144 million. This is the highest level of public debt relative to GDP, recorded in the last 10 years, and beyond the government forecasts which each year targeted a declining figure.