The 2022 State Budget included some very optimistic forecasts but the Government should have acted more responsibly. Especially at a time when we are still in the midst of a very abnormal year and when the pandemic is still around, said President of the European University of Tirana and economist, Selami Xhepa on Euronews Albania’s political panel show ‘Now’ – with Erla Mehilli.
In tonight’s show, focused on the 2022 State Budget, the renowned economist argued that “faced with the current uncertainties, our government should have maintained a slower pace, while increasing funding for welfare and financial assistance, especially at a time when an oncoming crisis of price hikes is coming towards us, headfirst”.
According to Xhepa, if this crisis were to also bring up our inflation rate, then this could bring about a rise in interest rates and subsequently trigger an economic catastrophe.
“2022 can’t possibly be considered a normal year, especially with the amount of risks involved, on a global scale. The pandemic is still uncertain and causing major instability in global markets, which could have very serious consequences.
If the price crisis does end up unfolding like many academics or even the Central Banks suspect, then it would be translated into a higher inflation rate which would force our central banks to increase their interest rates, which would subsequently lead to a catastrophe and the most daunting economic scenario since the 80s,” – said Xhepa.
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