World Bank: Albania, the highest growth in region for 2018

High growth in the first half of the year has improved the expectations of the World Bank about the Albanian economy for this year. According to the economic report for the Western Balkans, Albania, along with Kosovo, is expected to have the highest economic growth in the region for 2018, at 4%. In the World Bank analysis, economic growth was associated with job creation and encouragement of labor force participation.

However, the report also points out that half of the economic growth came from high production of electricity. The decline in the contribution of this sector, but also the closure of the TAP project, will have an impact on the economic growth rates for the coming years. In fact, the World Bank remains in the position that the growth of the Albanian economy will fall by mid-term to 3.5% by 2020.

To ensure a high long-term growth, the World Bank once again put emphasis on long-term reforms that increase human and physical capital, reduce barriers to labor force participation, and promote market competition. The report once again underscores that fiscal sustainability is a prerequisite for economic growth and requires focus on fiscal consolidation and the reduction of public debt.

In the context of budget management, the World Bank again sought to improve the quality of public spending, as well as improve the regulatory framework of concessions and public-private partnerships.

SCAN

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