The World Bank has confirmed that the Albanian economy grew by 3.8% last year, supported by private investments and increased consumption.
“The economic growth has increased, unemployment has dropped, and participation in the job market has also increased. There has been some positive news. But the government must continue to deepen the reforms”, declared Maryam Salim, Director of the World Bank for Albania.
Due to the increased employment, the population that lives on less than 5 dollars a day has increased wit 1.1%, taking 30,000 people out of poverty.
But the Bank warns that the growth may slow down this year, due to the completion of TAP and Devoll HPP investments.
This is why the Bank advice the government to improve the business climate and reduce the high public debt, which is threatened by concessions.
“Albania needs a stronger transparency for concessions. It must be clear what strategy the government has for investments and what are the priorities. Also, they should improve the way how these projects are chosen and how the contracts are managed”, the World Bank advises.
Besides reserves about concessions, the World Bank is also sceptical about the inclusion of Small Businesses in the VAT system.
In the same time, the Bank supports the toll fee for the Durres-Kukes highway.