World Bank: The Albanian Economy Will Grow 5.8 Percent In 2008

Tirana, June 17 – The increase in food and energy prices and the insecurity in the world economy are going to affect the Albanian economy, although not to the same degree as the more developed European economies. Besides the high prices of food and gas that are affecting the living standard of Albanian citizens, the world economic turmoil is going to reduce the growth rate of the Albanian economy. In its report on the world financial development for the year 2008, the World Bank predicts that the Albanian economy will grow during 2008 by 5.8 percent. In the beginning of the year, the World Bank had estimated that the Albanian economy was going to grow by over six percent. Experts working for the World Bank now believe that the world economy is going to recover slowly during 2009. Therefore, the World Bank thinks that during 2009 the Albanian economy is going to grow by 6.2 percent. The Bank predicts that growth in 2010 is going to be over six percent, also.
Albania is considered a country with relatively high economic growth compared to other developing economies. Both the International Monetary Fund and the World Bank consider a six percent growth rate as strong and successful. During recent years, the Albanian economy has experienced a steady growth. In 2007, the growth rate was six percent, while the average growth rate for the period 2000-2006 is 5.3 percent.
The Balkan countries have experienced economic growth rates of between four and six percent. However, other Eastern European countries have achieved growth rates that are comparatively higher. For example, last year the Georgian economy grew by 12 percent, Slovakia had a growth rate of 10.4 percent, while the economies of Romania and Bulgaria grew by 7.7 percent and 6.2 percent, respectively.
In 2007, per capita GDP in Albania reached U.S. $3,000. The data shows that Albanians have the lowest per capita GDP in the Balkans. Albania can be compared, to a certain degree, with Macedonia with a per capita GDP of U.S. $3,100. If the Albanian economy continues to grew with 6 percent per year, than Albania is going to need 12 years to double the per capita GDP. If the Albanian economy grew again at six percent a year, than Albania is going to need 18 years to reach the current per capita GDP of Croatia, U.S. $9,300, and nearly 40 years to reach the current per capita GDP of Greece, U.S. $21,000. It is clear that, although, a six percent growth rate is considered ‘strong’ by the World Bank, it is going to assure that Albanians, for many years, have the lowest per capita GDP in the region.