TIRANA, Feb. 1 – Albania climbed four steps to 59th in the 2016 Index of Economic Freedom, ranking as a moderately free economy and among the best performing in the region, according to a report published by U.S.-based Heritage Foundation and the Wall Street Journal.
The annual report measuring the impact of liberty and free markets around the globe ranked Albania 59th out of 178 countries, sandwiched between Hungary and Bulgaria, and worse only compared to neighboring Macedonia among EU aspirants.
The report highlights Albania’s trade and monetary freedom as notable successes, but describes property rights, corruption and labor freedom as concerns.
“Albania’s average tariff rate is just 1.2 percent, and its trade and investment policies are much more open than the global average. The government officially welcomes investment in most sectors of the economy,” says the report.
“The economy is dominated by agriculture, which employs about half of the workforce, and services, including tourism. Growth is tepid, hampered by high public debt and corruption,” notes the report.
Economy Minister Arben Ahmetaj described Albania’s improved ranking in the report as an indicator of ongoing reforms the Albanian government is implementing.
“This is a reflection of ongoing reforms and the indicators tell us and urge us to think that we haven’t completed these reforms yet, but on the other hand still have a lot to accomplish,” Ahmetaj said.
Among regional EU aspirants in the 2016 report, Macedonia ranked 47th, Montenegro 65th, Serbia 77th, Turkey 79th, Kosovo 84th and Bosnia and Herzegovina 108th.
Albania achieved its best ever result in the Index of Economic Freedom in 2010 when the country ranked 53rd. In 2013, the country ranked 58th before it plunged to 63rd in 2015 while back in 2012 and 2011 it ranked 57th and 69th respectively.
Europe became less economically free last year, with factors such as costly labor regulations and high tax burdens hampering growth, says the 2016 report. Launched in 1995, the Index evaluates countries in four broad policy areas that affect economic freedom including rule of law, limited government, regulatory efficiency and open markets.
