Albania's economic performance slows down significantly: This, according to the World Bank, is due to projections that show the country's economy will not grow more than 2.9%, while in two years time, data shows a slight improvement in performance but still not reaching the level of 4% as desired.
“The trade deficit in energy is the main cause of the negative contribution to the trade deficit, but also the uptick in imports has had a similar impact,” said representative Hilda Shijaku.
According to World Bank's Albanian representative, the public debt must also be considered high.
“The reduction in public debt remains an objective, but the pace of fiscal consolidation during 2019 has been slower. The slowdown in economic growth and the need to settle VAT arrears have led to a decline in revenue as a percentage of GDP,” said Shijaku.
Once again, the World Bank representative for Albania, Maryam Salim, called for more transparency with PPP projects.
“PPP is not a bad thing. Every country needs more infrastructure and this is carried out in cooperation with the private sector.
“But the problem is their structure, transparency in financial terms, the benefits that come from them and whether or not they are adapted to the needs of the country.
“Whereas in terms of calling on banks not to fund the PPP projects-- they are institutions that decide on their own after the analysis they make,” said Salim.
The World Bank has called for, among other things, continued structural reforms, fiscal consolidation, and increased efficiency in public expenditures.
Meanwhile, INSTAT data shows that inflation fell during the month of September, achieving 1.3%-- down from 2.1%, indicating a decline in consumer consumption.