TIRANA, Oct.23 – Talking at the annual IMF meeting held these days in Washington D.C., the Italian finance Minister, Tommaso Padoa-Schioppa, referred to the Albanian economy as vulnerable to two problematic sectors: construction and energy. The Minister talked about the economies of Albania, Greece, Italy, Malta and Portugal. However, Shcioppa has declared that so far the economic growth of Albania ha snot been harmed butt he IMF has asked for attention to be given to these tow important sectors of the economy. IMF has otherwise been quite optimistic about the economic development of Albania.
Predictions
Even for the year 2008 the annual economic growth of Albania will be 6 percent. The growth seems unhampered from the financial international crisis, the domestic energy crisis and the fluctuations in major industries such as construction. Albanian IMF mission head, Ann Margret Westin has said that “I have seen many wonders happening in this economy. Despite considerable problems it is facing, it goes on to grow with satisfying pace.”
Construction
The construction sector during these two years is facing considerable difficulties largely also to the conflicts between central and local branches of the administration, that have led to a fall in the construction permits granted.
The crisis in the construction sector has been reflected in the increasing prices of apartments and in the fall of sales for the first half of this year. Data about the volume of sales obtained by the periodical observations of the BOA reveal that the activity of the construction firms has fallen substantially. The first quarter of 2007 brought a contribution of 31 percent lower than one year ago in the sales. The situation in the second quarter worsened.
