INSTAT needs to be provided with adequate resources in order to make effective use of the substantial technical assistance delivered by the international community
TIRANA, June 28 – High-quality economic statistics are essential to the improvement of policy making and business environment, said the International Monetary Fund in its latest report on Albania. The authorities’ efforts aimed at improving economic statistics are welcome; and further progress on improving the statistical base is essential. “Priority areas for improvement include external sector statistics and national accounts. INSTAT needs to be provided with adequate resources to make effective use of the substantial technical assistance delivered by the international community.” In an earlier report, the IMF said that despite significant progress in statistical development in recent years, there remain also important issues of lack of credibility among at least some of Albania’s compiling agencies. “At the users’ meetings, and confirmed at meetings with officials, there were strong indications that Albania’s history of past government involvement in statistics has generated a legacy that is not yet fully resolved, that there is mistrust in official statistics.” As in other countries, issues such as whether the country has gone into recession have threatened to produce an apparent politicization of statistics, meaning that whatever numbers are produced may not be believed, added the IMF. Upgrading investment and business climate Boosting productivity by attracting foreign investment is key for higher sustainable growth, suggested the IMF staff after concluding a visit to Albania last week. The last decade witnessed the arrival of large-scale international investors in Albania, a critical factor in the transfer of technology and innovation, which in turn is essential to raising productivity and providing higher-wage employment in Albania. A favorable investment environment is a vital condition for success. Albania’s EU perspective is one critical element in its attractiveness to investors. Other key requirements include the maintenance of a level playing field, the adoption of international best-practice regulations and their predictable enforcement by professional institutions. It is also important to persevere with the remaining structural reform agenda, where a relative deceleration of momentum in recent years has been evident. Further action is especially important in securing property rights, land titling and improving contract enforcement.
