The European Commission advised the Albanian government to continue the policy for reducing its public debt and bad loans and to try and take advantage of this positive moment.
The recent economic assessment for candidate countries issued by the European Commission notes that the economic growth of Albania was accelerated during the first half of this year, supported by foreign investment and increased consumption.
The Albanian economy grew with 4.4% during the first trimester of 2018. This is the highest growth in a trimester for the past three years and a half.
According to the Commission, all elements of the internal demand have contributed positively in the economic growth, but the highest effect was given by increased consumption in the private sector and by business investments.
Private consumption kept a solid growth of 3%, supported by the increased employment and higher salaries, especially in the public sector.
According to the Commission, the recovery of the economic growth was followed by increased employment, especially in the private non-agricultural sector, in which the number of employed citizens grew with 12.2%, compared to one year ago.
But this improvement of the economic situation, according to the Commission, should be used by the government to reduce the public debt and bad loans, two problematic indicators for Albania.
Albania needs to continue with the fiscal consolidation. Although the public debt was decreased to 69% of the national GDP, this remains very high.
The European Commission says that the Albanian economy grew with 3.6% during 2018. For the next year, the growth will reach 3.9%.
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