In the next three years, economic growth engines will slow down in Albania.

In the latest report, the World Bank predicts that the add-on in the next three years will go up to 3.8 percent.

The political crisis is seen as a risk to foreign investment as it damages the climate of doing business.

“In the next three years, the economy of Albania will see a reduced rate of growth than in 2018 for some factors.

“First, the pace of potential growth will be one that will attract economic growth.

“Temporary factors that have been observed in 2018 and in some of the previous year do not seem to be present, but this economic growth is accompanied by external and internal risks.

“Among the external risks we can mention the trade warfare and geopolitical agreements that can weaken economic ties between countries, especially with partner countries.

“Another factor is a slower growth in the economic growth of EU countries, especially Italy, which recorded a recent recession.

“Also less favourable conditions for borrowing would increase the borrowing cost for Albania, as it is vulnerable to foreign lending.

“It can be factorized as one of the external hazards.

“Among the internal dangers we can mention the climate factors that can generate both in Albania and in all Balkan countries.

“There are positive moments for economic growth, but there may be years in which there is great damage,” said Hilda Shijaku.

Despite the reduction of public debt, the World Bank stresses that care should be taken in regards to the effects of Private Public Partnerships.

“Fiscal risks are present and related mainly to off-balance-sheet activities involving Public Private Partnerships and the obligations that can accrue to public enterprises,” Shijaku added.

The World Bank urges the government to build mechanisms to cope with the crisis.

In just the first month of the year, 100 million Euros were spent on importing energy to meet the country's demands, while the hydropower industry is reaching a point of death.

“The government should not simply look at whether there is a current fund for the current year to close energy needs, but it also needs to create mechanisms to ensure sustainability in the energy sector,” said Shijaku.

To improve the economic situation, the World Bank suggests continuing with structural reforms.



/Ora News.tv/