TIRANA, March 3 – The World Bank has urged Albania to continue its reform agenda and focus on a long-term shift to investment and export-led growth for greater prosperity.
“As Albania shifts to an investment and export-driven growth, improvements in the business environment, good governance, and transparency will be key to reaching higher growth rates and building shared prosperity,” said Cyril Muller, World Bank Regional Vice President for Europe and Central Asia after concluding his first visit to Albania this week.
Albanian authorities have also put investment and exports on top of the country’s growth agenda as the pre-crisis construction and remittance fuelled growth has come to an end.
While exports have been affected by a sharp decline in international oil and base metal prices, foreign direct investment seem on track fuelled by the ongoing construction of major energy projects such as the Trans Adriatic Pipeline and the key Devoll hydropower plant.
The World Bank says declining losses and improved collection rates in the energy sector as well as pension reforms have enhanced Albania’s social and fiscal stability.
“We are beginning to see positive results from the first wave of macro-economic and structural reforms. Completing this difficult long-term reform agenda will take time; it is critical to maintain momentum and stay the course,” said Cyril Muller.
The senior World Bank official highlighted the need to find new sources of growth for accelerating inclusive and equitable growth, including a strong push to strengthen public services, regional connectivity, inclusion and gender equity in labor markets, and unleashing the potential of the private sector.
The World Bank has supported Albania to achieve its national priorities since 1991 when Albania joined the World Bank. A total of 86 projects comprising over US$2.4 billion of IDA credits and grants and IBRD loans have been provided to the country. Currently, the World Bank is supporting a portfolio of nine projects, amounting to US$544 million.
