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Albania and Montenegro have the highest public debt in the region for 2018 according to European Commission, in the periodic report on economic developments in the countries who are waiting to be part of EU.
European Commission data show an impressive decline in public debt in Serbia, which is expected to reach 56.4 percent at the end of 2018, by more than 86 percent in 2014.Serbia, which led the region for the highest level of public debt, is now in third in position, while Albania and Montenegro dominate the rankings.
Montenegro expects to close the year with a debt of 70 percent of GDP. Montenegro's debt increased significantly in recent years due to the authorities' efforts to build a highway linking with Serbia with a value of about 900m euros in Chinese financing.
Meanwhile, Albania's debt continues to be inflexible to positive macroeconomic developments.
Albania's economy grew at the highest rates in the region with over 4% of GDP at the end of the 9-month period and the public debt is "nailed" at about 70%. Following the official figure of 69.9% of GDP, which is expected to close the public debt in 2019. The reality on public debt remains sluggish because of the unpaid debt of about € 24 billion or 1.5% of GDP.
In other countries in the region, the public debt is at the limit of 60%, which the IMF considers worrying. Macedonia expects to close the 2018 with a debt of 42.2% of GDP, while Bosnia with 35%.
Turkey and Kosovo appear with the lowest debt in relation to GDP. Although Turkey faced a crisis that invalidated the Turkish lira, the country's debt grew by only 2% of GDP during 2018.
While Kosovo, as it is a new country, there is still plenty of room to consume public debt, which at the end of 2017 was at the level of 16.6% of GDP.