EBRD: Albania, 0.6% economic growth

In July, EBRD declared that the production increase for 212 would be 1.2%, but on the last bulletin they have put it down to 0.6%. EBRD says that the reasons are the low progress of the economy in the first semester, mainly due to the deterioration of the economic situation in Greece and Italy, the two main neighbouring countries.

According to EBRD, Albania’s strong connections with the countries, such as commerce, investments and remittances will slow down the economic growth and the high public debt leaves no space to the government to intervene. The international scenarios for the economic growth in Albania present a very dim situation, and far from the official government predictions, which expects an economic growth of 3%.

Crisis, EU punishes Balkan region

All South-Eastern Europe economies are facing a deepening of the crisis. EBRD says that the economic perspective of the region is unsafe and the main danger is the weakened financial system. The banking system in Southeaster Europe is mainly owned by banks that have their capitals in the Euro zone.

All these banks are implementing a harsh policy, in order to rebalance the balances that were shocked by the crisis. The main way is to give fewer loans. Because of the poverty level, Albania is one of the mostly affected countries.

 The loan increase for the private sector marked the lowest historical figure, that of 4.8%, by working a further decrease of the economy. The crisis has obliged the banks to try stopping it by not financing the investments and the private consumption, which work mostly for isolating the crisis effect, asking for those to compensate the Balkan countries for the cost that their economies are paying because of the Euro zone crisis.

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