European Western Balkans
Economy & Business

European Commission: Economy of Albania recovering, further reforms needed

TIRANA – Albania’s economic growth is expected to accelerate to 4.2% in 2018 from 3.9% last year, the European Commission said in a new report.

“The growth of Albania’s gross domestic product is anticipated to accelerate further to 4.3% in 2019 and 4.4% in 2020,” the commission said in the report assessing the 2018 Economic Reform Program of countries that are candidates or potential candidates for EU membership.

Private consumption in Albania is set to accelerate based on moderate growth in employment, gradually increasing wages and rising consumer confidence, the EC noted.

“Sustaining the ongoing economic recovery requires further reform efforts and the tackling of macroeconomic weaknesses in relation to public finances and the financial sector”, emphasizes the Commission.

“Public debt (including guarantees) is still close to the relatively high level of 70% of GDP and is associated with significant rollover, interest rate and exchange rate risks,” the EU executive body said.

According to Albania’s ERP, the country’s public debt-to-GDP ratio would fall from 71.5% in 2017 to 63.5% in 2020.

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