Albanias Parliament to vote on 2012 budget law next week.

By bne IntelliNews November 30, 2011
Albanian Parliament will vote on the 2012 state budget at a plenary session on December 5, local ABC news channel reported. The lawmakers approved in principal the bill on November 26. The key objective of the fiscal plan is preserving macroeconomic stability and ensuring the implementation of key infrastructure projects and income growth. The government plans to cut the budget deficit to 3% of the GDP in 2012, down from 3.5% expected in 2011. Budget revenue are planned at ALL 355.8bn (EUR 2.5bn) or 3.5% higher than the revised 2011 figure. Expenditures are seen at ALL 396.9bn (EUR 2.8bn), an annual increase of 1.6%. The cabinet has reiterated its 2012 GDP growth forecast at 4.3% y/y, compared to 3.9% expected for this year. However, this seems way optimistic, considering that the IMF, the World Bank and the EBRD cut their GDP projections for the country to 1.5%, 2% and 1.9%, respectively. The three international institutions noted that slower economic growth in the EU was the main reason for forecast downgrade. Under the cabinets macroeconomic framework, Albanias current account gap will narrow from 12.4% of GDP in 2011 to 11.9% of GDP in 2012. Exports will grow 15% y/y, outpacing the imports growth rate of 6.4% y/y. The average annual inflation is projected at 3% y/y in 2012.
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