2011, the gloomiest economic year

According to INSTAT, the economic growth for the first six months of the year, compared to one year ago, was less than 2%. This is the lowest figure since Albania has started publishing the economic growth every three months.

For the first half of the year, the economy has grown even less than the same year of 2009, not only in 2010, when the global crisis was peaking. According to INSTAT, one of the main causes why the Albanian economy is facing a slowdown is related with the local industry.

In the last two years, the production in the industry sector increased with a high pace, returning it into one of the most attractive sectors of the economic growth.

But in the second trimester of 2011, the industrial production not only did not increase, but fell with 8.5%, compared to the same period of one year ago. The Albanian government had predicted an economic growth of 3.9% for 2011, but the recent INSTAT figures indicate that this is practically impossible, because the economy not only is not being improved, but it is still slowing down.

If the figures of the third trimester of 2011 will confirm the tendency of the two first trimesters, chances are that the economic growth will be much lower than the government’s official evaluations, by focusing the debates again on the stability of the public finances.

If the economic growth will be less than what the government evaluates, the public debt of the country will automatically be higher than the official numbers, risking the cross the legal border of 60%.

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