EC reduces projections for Albania’s economic growth in 2018, 2019

The European Commission has significantly reduced the projections for Albania’s economic growth this year and the next one.

For this year, the EC projects an economic growth at 3.6% this year, from 3.8% that was in the January report, and at 3.9% next year, from 4.2% projected in the previous report.

So, there is a reduction in projections by 0.2 and 0.3 percentage points, respectively.

Despite the prominent reduction of projections, the second at a row, the European Commission estimates the Albanian economy in positive terms, pointing out that the economic downturn this year is the result of a fall in investment rates.

Private consumption, on the other hand, is highlighted as the locomotive of economic growth.

Foreign trade is projected to make a negative contribution to the country’s economic growth.

“Private consumption will remain the engine of growth, gaining momentum from rising employment, higher salaries and consumer confidence over the average.”

“Monetary easing policies will spur household spending and business investment”, writes the European Commission in its spring report on economic projections in the European Union and candidate countries.

Regarding the risks to economic growth, Brussels notes delays in implementing structural reforms.

The factors that can also spur a larger growth are closely related to the prospect for country membership.

This may give a boost to the economy, Brussels states.

SCAN

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