How big is the public debt of countries in the Balkans? Public debt shows the low level of indebtedness of BiH in comparison with its neighbors.
Only Kosovo and Macedonia are less indebted than BiH – Kosovo because it had no opportunity for credit arrangements and Macedonia because it is only one percent behind BiH in terms of the amount of public debt. The report of the World Bank states the amount of public debt in relation to the GDP and the projection of debts in this year and at the end of 2017.
In 2015, the public debt of BiH amounted to 39.5 percent of the total GDP. In 2016, it will slightly increase to 41.4 percent, and in 2017 to 42 percent of the GDP.
The amount of debt in relation to the GDP in Montenegro will amount to 72.3 percent of the GDP in 2016 and even more in 2015 – 76.4 percent, which really sets the alarm bells ringing.
In Serbia, the amount of public debt wad 69.5 percent of GDP. It is being assumed that in this year the public debt will reach the amount of 73.2 percent of the GDP and in 2017 the amount of 73.3 percent of GDP. That is an enormously difficult situation that a country can hardly get out of.
After Serbia and Montenegro, Albania is the third according to the amount of public debt: in 2015 it amounted to 67.8 percent of GDP, in this year it will amount to 65.8 percent, and next year it will amount to 62.9 percent. Thus, the public debt of Albania will be reduced by nearly five percent.
All in all, BiH is a moderately indebted country. It needs urgent development of economy and some sort of a serious reform in order to move from the standstill.
(Source: novovrijeme.ba)
