What keeps Albania’s economy from growing? Interview with IMF Vice Director

13/02/2018 17:15

The International Monetary Fund declared that the improvement of the global economy gives Albania the chance for a higher economic growth.

The Vice Director of the IMF, Tao Zhang, suggests the government to deepen the reforms for a better economic growth and for approaching the income with the EU.


Top Channel: “The Albanian economy is recovering after a long period of slow economic growth. But is the 4% growth enough for reducing poverty and approaching the welfare of Albanian citizens to that of the EU?”

Tao Zhang, Vice General Director of the IMF: “We have seen that the economic growth has improved, but it remains smaller than before the crisis. Albania has good chances for a higher growth, seeing its rich resources and good geographic location. There are all conditions for this to be realized. This is one more reason for the authorities to not stay hand in hand.

Top Channel: “How can Albania benefit from a better situation of the world’s economy? What are the obstacles that don’t allow a faster growth?

Tao Zhang: “The public debt is high. The banking sector is facing a higher level of bad loans and the judiciary reform has still much work to do for a more effective, more transparent and more responsible system to the public.

Top Channel: “Why is the judiciary reform so significant for the economy? IMF has mentioned it several times as an element that will determine the future of the economy.

Tao Zhang: “The judiciary reform and other institutional reforms, including good-governing reforms, are a key element for reinforcing the trust of the private sector, foreign and locals alike.

Top Channel: “Do you think that the Albanian economy would have benefited more if the government had signed a new agreement with the IMF?

Tao Zhang: We just concluded a three-year agreement with Albania. IMF is ready to continue with its commitment in Albania. In what form will this commitment be, with a new program or other cooperation methods, this remains to be seen.

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