The deficit will increase in 2007 draft budget

TIRANA, Oct. 28 – The draft budget bill predicts a deepening of the budget gap. Hence from a deficit target of 3.8 percent of the GDP, the Finance Ministry predicts a realistic rate of 4.8 percent. The GDP will increase from 899.7 billion leks for this year to to 982.2 billion leks in 2007 (nominal terms). GDP per capita will thus increase by 8.2 percent. Coupled with the rise in budgeted salaries and the latest initiatives against poverty this translates into good news about Albanians’ general standard of living. Other predicted figures include: economic growth at six percent and a three percent average annual inflation. For the current year the economic growth is at five percent and an average inflation of between two and four percent. Eva Simoni, spokesperson of the Finance Ministry, said that the draft budget bill has already been approved by the government. The GDP per capita is seen rising to $3,122 in 2007 from $2,883 in 2006.