In its World Economic Outlook database, the IMF expects Albania’s public debt to increase from 64.8 percent in 2013 to 82.6 percent in 2018
TIRANA, Oct. 9 – The International Monetary Fund expects the Albanian economy to remain sluggish in the next five with growth rates ranging between 1.7 percent in 2013 to 2.5 percent in 2018. In its October World Economic Outlook, the IMF says the Albanian economy is expected to grow by 1.7 percent in 2013, up only 0.1 percent compared to 2012 when it registered its poorest GDP growth rate in the past 15 years and half of the average 3 percent growth rate from 2009 to 2011. The expected 2013 growth rate at 1.7 percent is 0.5 percent lower compared to the average growth rate of the central and Eastern Europe average of 2.3 percent. The IMF expects Albania’s growth rate to slightly accelerate to 2.1 percent in 2014 and rise to 2.5 percent in 2018.
The IMF forecasts Albania’s inflation rate to slightly increase to 2.5 percent in 2013, up from 2.4 percent in 2012 remaining within the central bank’s 3 percent target band.
The IMF also expects the current account deficit to drop to 9.3 percent of the GDP in 2013 and reduce to 7.4 percent of the GDP in 2018.
In its World Economic Outlook database, the IMF expects Albania’s public debt to increase from 64.8 percent in 2013 to 82.6 percent in 2018.
“In central and Eastern Europe, growth rates are projected to gradually increase, helped by recovering demand in Europe and improving domestic financial conditions. With a few exceptions, the effects of externally induced increases in interest rates will be limited and partly offset by currency depreciations,” says the IMF.
In its latest country report on Albania, the IMF says the economy is sluggish because of weak domestic demand. “Growth is expected to remain low in 2013, at 1.7 percent as stagnating credit, troubled corporate balance sheets, and declining remittances are a drag on domestic demand, while the rise in arrears has aggravated liquidity constraints in the private sector.” “Significant import compression and one-off improvement in the energy trade balanceشhanks to strong hydroelectricity production and exportsءre driving a moderate external current account adjustment. Growth could increase modestly in 2014, provided the authorities initiate much needed policy and structural reforms. With output below potential, and unemployment above trend in 2013-14, the mission expects inflation to be muted,” says the IMF.
