World Bank: Economic growth for Albania 2.9% in 2019

Albania’s economic growth for 2019 is only 2.9 % from about 4.45% in 2018. The fall of energy production due to the decrease in rainfall is one of the main reasons listed by the World Bank having a great impact in this flagging of the Albanian economy. But According to the WB, although a slowdown in economic growth is projected, the labor market continues to improve. Unemployment hit a historic low of 11.5 percent in June 2019.

World Bank experts have assessed informality as one of the structural weaknesses , and therefore they welcome the implementation of fiscal law. According to the bank, the risks from state-owned enterprises have also increased due to the creation of new liabilities.
As for PPP, the World Bank continues to require caution in managing them. “PPPs are not a bad thing and are used elsewhere, especially in infrastructure development, but the question remains how they work, are they transparent or do bring profitability to both parties and do they serve the country,” the World Bank report reads.
Demographic developments in the country are still not seen as problematic and have an impact on the economy. According to World Bank experts, Albania still has a cheap labor force and capacity. But for the World Bank, of course, these have a negative impact on long-term forecasts.

/Klara Ruci/

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