TIRANA, March 6 – According to Finance Minister Petrit Malaj, Albania’s public debt continued to decline in 2025, reaching 53.04% of GDP at the end of the year, down from 54.21% in 2024. Over the past five years, the country has reduced its debt by around 21 percentage points, a decrease higher than in Serbia, North Macedonia, Bosnia-Herzegovina, and Kosova.

Domestic debt accounted for 59.4% of total government debt, while external debt represented 40.6%. The average cost of domestic debt fell to 4.23%, compared with 4.56% in 2024. The average cost of external debt decreased to 3.53%, from 3.70% the previous year.

Risk indicators also improved, with the average maturity of public debt rising to 2.8 years, compared with 2.6 years in 2024. The share of debt in foreign currency fell to 40% from 42% in the previous year.

Minister Malaj described these trends as a sign of Albania’s fiscal stability and economic resilience, highlighting the improvements in debt structure and cost as important for medium-term sustainability.

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