Albanian economy to be driven by impetus this year and next one: BMI Research

BMI Research, part of Fitch Group, one of the three largest credit rating agencies in the world, along with Moody’s and Standard and Poor’s, has considerably increased projections for the Albanian economy this year and the next one.

The agency’s latest report speaks of an economic growth rate of 4% this year, from the previous projection 3.6%, and this is the second growing month in a row.

In the face of two recent reports, Fitch has revised the Albanian economy by 0.7 percentage points.

Even for the next year, the agency seems convincingly more optimistic, as it speaks of an economic growth rate of 3.6%, from 3.3% estimated in the previous report.

This review, as the report states, receives an impetus from the external environment as well as the improvement of the risk profile as a result of June’s general elections.

Political stability, along with the Central Bank’s monetary alleviating policies, is stated that will improve both private consumption and foreign investment.

In the section listing the viewpoints of the agency for Albania, the report opens with the latest developments in the country and the involvement of a former Interior Minister in an investigation process.

This, the report states, could weaken the governing majority.

Another assessment of rating agency refers to consumer prices, which will likely increase significantly in the first half of next year.

In terms of risks, the agency focuses almost exclusively on the debt and the risk that the economy can sustain if this debt is overblown or if there is a lack of the political will to pursue both reform and fiscal consolidation.

SCAN

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