Economic growth for 2012, only 0.5%

In a recent document for the economic prediction, IMF corrected the latest figure by bringing it down to 0.5%. According to the IMF, the European crisis is affecting Albania too, which, according to this institution, had a smaller economic growth during 2011, with 1.1%. For this year, IMF had predicted on September an economic growth of 3.5%.

But after their mission, one month later, IMF lowered these figures to 1.5%, while their latest report said that the economic growth was under 0.5%. This unwanted prediction for the Albanian economy is on the same line with the IMF expectancies for other Southeastern countries, where the average economic growth is predicted 0.7% during 2012.

In the latest report IMF also gives the reasons. During 2012, IMF says that the inner demand is expected to be smaller, due to the decrease of remittances which are sent by emigrants, the more preserved loans from banks and the less fiscal encouragements by the government.   

In the conditions of such a low economic growth, IMF advises that it is very important to establish a credible fiscal order for lowering the debt.
“This is another critical point, especially during this year, since Albania must encourage credibility for private investments and stimulate the economic growth”.

IMF says on this report that for encouraging the economic growth and productivity, the Albanian authorities must accelerate the reforms, improve the business climate and reinforce the property rights and agreements.
“The monetary policy should be easier, without forgetting the main objective for keeping the inflation under control”.

The latest IMF prediction for Albania’s economic growth during 2012 is among the lowest, almost the same with that of 2009, when the world was facing the first wave of the international crisis. Although the IMF predictions have been lower than the final results published by INSTAT, it remains a strong signal for the economic situation and the actions that need to be taken for staying as far as possible from the crisis of this year, which is expected to be as the most difficult.

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