Public debt to jump to 66% of GDP and will not drop below 60% until at least 2026

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The country’s public debt will grow, and stabilization, or a drop below the psychological limit of 60 percent of GDP, is not expected until 2026, analyzes the economic news portal “Denar”.

The debt will reach 63.9 percent of GDP this year. The record will be broken in 2022 when it is projected to grow to 65.9 percent of GDP. In 2023 it is projected at 65.2 percent. A drop, but not below 60 percent, is planned for 2024 – when the public debt is projected at 62.5 percent. In 2025 it should be 60.1 percent and by 2026 it should drop to 57.7 percent of GDP.

The government has adopted a Fiscal Strategy for the period 2022-2024, with outlooks until 2026 and a strategy for Public Debt Management.

However, the Ministry of Finance, until the strategies are announced publicly, does not reveal how many billions the public debt will reach in the coming years. By March this year, the country has reached its biggest debt so far – 7.1 billion euros, which is 62.5 percent of GDP. And the forecasts are that the debt will grow.

PUBLIC DEBT PER YEARS

2021 63.9% of GDP

2022 65.9% of GDP

2023 65.2% of GDP

2024 62.5% of GDP

2025 60.1% of GDP

2026 57.7% of GDP