Public Debt and Economic Growth in Albania

Abstract

Abstract A high public debt and its consequences in the economy remain a very important issue to be discussed, especially during the periods of crisis and recessions. During the crisis, although Albania managed to maintain a positive economic growth, its public debt remains high and worrying for the economists. The purpose of this paper is to determine if there exist a correlation between the public debt and the economic growth in Albania, where the economic growth will be considered as the increase of GDP. Many authors have provided their contributions with various empirical analyzes to study the mutual link between economic growth and public debt and the results and the methodologies are different in different countries and periods. What is the situation in Albania at about the last 25 years? Analyzing the macroeconomic situation (the structure of Albanian public debt, the data on economic growth and public debt, the reasons of a high deb etc.) and the main causes of a positive growth and a macroeconomic stability, but a high public debt, we can conclude over the expectations and the trend of the future.