EBRD expects lower economic growth
15/05/2013 00:00
Protest in front of the Albanian Parliament against the new budget ends prematurely 19/11 21:20
The European Bank for Reconstruction and Development has corrected its
predictions for Albania’s economic growth by giving even lower numbers.
EBRD states that the economic growth will come down to 1.5%, from 1.9% that they had predicted three months ago.
The document says that the Albanian economy slowed down last year, when the production growth went town to 1.6%, although this is the highest growth in the region, except from Kosovo. According to EBRD, the strong slowdown of the production growth comes in a time when the government and Bank of Albania have no more spaces to stimulate the economy, due to the high debt and the lowest level in history of the interest rates.
On the other hand, the Bank notes that the banking system in Albania is facing a higher level of bad loans and remains exposed to external hits. The detailed EBRD report underlines that the entire Southern European region is facing deep economic difficulties due to the Eurozone crisis. The Bank experts suggest that the Balkan countries now need to rely more on their resources and undertake a series of domestic economic reforms, to keep the crisis from getting deeper.
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