TIRANA, February 19 – Public debt relative to Gross Domestic Product (GDP) fell significantly over the past decade, reflecting improved fiscal sustainability and more efficient debt portfolio management.

According to data from the Ministry of Finance, the debt-to-GDP ratio dropped from 70.03% in 2014 to 54.21% in 2024 and 53.04% in 2025 (preliminary data as of December 31, 2025). This decline signals that the economy grew faster than debt, strengthening fiscal balances.

At the same time, financing costs decreased. The average yield on domestic debt fell from 4.56% in 2024 to 4.23% in 2025, while the average cost of external debt declined from 3.70% to 3.53%.

Lower interest rates contributed to optimizing debt servicing expenditures.

The debt portfolio structure also became more balanced. Domestic debt accounted for 59.4% of the total, while external debt made up 40.6%. The share of debt in foreign currency fell to around 40% from approximately 42%, reducing exposure to currency risk.

Another key indicator is the extension of the average maturity of domestic debt. It reached 2.8 years (1,002 days) in 2025, up from 1.7 years (630 days) in 2014 and 2.6 years (923 days) in 2024.

Longer average maturities improve the refinancing risk profile and enhance the sustainability of public finances.

/a.p./