Pace of economic growth in Albania slowed down, World Bank reports

Tirana Times
By Tirana Times October 8, 2019 12:44

Pace of economic growth in Albania slowed down, World Bank reports

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  • According to the study, Albania is ranked second in the region for having the highest public debt, while the deficit is expected to reach 2.2 percent at the end of the year

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TIRANA, Oct. 8 – On Tuesday in Tirana, the World Bank published its Regional Economic Report for the countries in the Western Balkans, highlighting growing uncertainties. “The pace of economic growth in Albania is predicted to slow down by 2.9 percent due to the drought causing a decrease in energy production,” the WB report states. The last prediction  3.7 percent.

According to the study, Albania is ranked second in the region for having the highest public debt, while the deficit is expected to reach 2.2 percent at the end of the year. The reduction of the public debt was facilitated by keeping the held up expenditures and obligations in control.“Albania should implement reforms that avoid risks which come from contracts with PPPs and State Enterprises as well as the slow pace of structural reforms, to have greater economic growth”, the WB reported. The study found that expenditures outside the balance sheet such as those from PPS, are at an increasing risk. “Albania should save the fiscal consolidation, increase efficiency of public expenditures and implement structural reforms which strengthen economic growth,” the report recommended.

However, the report shows a rise of employment in the agriculture and service sectors as well as an “unemployment level at a new historical low”. Additionally, wages in commerce, transportation and tourism sectors increased as a result of last year’s economic growth. Inflation decreased by 1.5 percent due to the overpricing of the lek, the domestic currency, as well as the influence of external trading partners. The Bank of Albania is principally trying to reduce the influence of the overpricing of lek in domestic prices.

 

Tirana Times
By Tirana Times October 8, 2019 12:44