TIRANA, Jan. 28 – The further recovery of the Albanian economy requires several new structural reforms in the enforcement of contracts, solving ownership titles and the well-administration of taxes, says Jens Reinke, the IMF resident representative in Tirana.
Speaking in an interview with Ora News TV, the IMF representative considered these reforms as crucial to improve the business climate and offer new opportunities for the Albanian economy.
The IMF which is assisting Albania get back to sustainable growth with a renewed three-year deal supported by a Euro 334 million loan to clear accumulated arrear, expects positive short-term impacts from the reform in the energy sector and long-term benefits from the pension system reform.
The IMF expects growth for 2015 to accelerate to 3 percent, down from 2 percent in 2014.
“What can be noticed is that the growth rate is not at those levels which would solve social issues or narrow the gap with EU countries,” said Reinke.
Speaking about the 2015 prospects, Reinke said, “We don’t expect a dramatic change. The economy will continue recovering and growth will be fuelled by exports and foreign direct investment as well as the improvement of domestic demand and an increase in confidence from businesses from the payment of accumulated unpaid bills,” he added.
“Interest rates are expected to remain at low levels, which will support the recovery of the economy. The trade gap could further widen but this is not necessarily a bad thing asit is related to the increase in foreign investments such as the Trans Adriatic Pipeline.”
The IMF concluded its permanent mission to Albania in January 2009 when relations with the Fund were reduced to an advisory role. The renewed deal also came after the country’s economy sharply slowed down in the past couple of years, with GDP growth at an estimated 0.4 percent in 2013, the lowest in the past 15 years and the forecast for 2014 at 2 percent.
