Greek economic crisis to affect Albania due to strong presence of Greek banks, the high number of Albanian immigrants in Greece and the large trade volume between the two countries, Mr. Fullani says.
TIRANA, Dec. 24 – Albania’s central bank governor, Adrian Fullani, warned this week that the first quarter of 2010 would suffer from an economic slowdown and the government faces difficulties if the tax revenue does not meet expectations.
He also said the effects of the political crisis in the economy, if any, would show up in the same period.
According to Mr. Fullani, in recent months the fiscal policy continued its expansionist tendency, but tax revenues have declined as a result of the decline in VAT and profit taxes. But at the same time there have been increased budgetary costs, causing what remains the biggest economic problem, the budget deficit.
Mr. Fullani is also worried that the Greek economic crisis will affect Albania due to strong presence of Greek banks in Albania, the high number of Albanian immigrants to Greece and the large trade volume between the two countries.
The performance of Albania’s second largest trading partner is important as Greek banks in Albania dominate the market due to the high level of Albanian immigrants in the neighboring country.
“It should be said that the effects of Greek economic crisis will be felt here, but it’s still too early to say at that level,” Mr. Fullani said.
