The report of Intelligence Unit of the Economist noted that the Albanian economy is facing a difficult situation. The report notes that the left centered government inherited a heavy situation. The economic growth slowed down in the past two years, and a tax regress started in the electoral year of 2013, due to pre-electoral expenses […]
The report of Intelligence Unit of the Economist noted that the Albanian economy is facing a difficult situation.
The report notes that the left centered government inherited a heavy situation. The economic growth slowed down in the past two years, and a tax regress started in the electoral year of 2013, due to pre-electoral expenses and dropped incomes.
“By the end of January, the Institution of Statistics reported that economy shrank with 2.3% in the third trimester of the past year. This was the worst result since when Albania started measuring the economic growth every three months. The negative results of the period June-September, according to the Economist, mark that the economic growth for 2013 will be worse that the 1.6 growth that was predicted in 2012, which was the lowest figure since 1997.
On the other hand, the report notes that the country’s public finances deteriorated during the past year, due to the pre-electoral spending, the dropped revenues during the transitive period in the third trimester, and the economic slowdown. For these reasons, Intelligence Unit has reduced its prediction for 2013 from 1.4% to 0.9%.
The anemic growth of 2013 reflected the prolongued recession of the Eurozone, especially in Greece and Italy, as the two main partners of our country. However, the Economist notes that the contraction in the third trimester is also related with interior factors, especially the political chaos and uncertainties, caused by the power rotation after the left government took the new duty by mid September.
For 2014, the Economist predicts that the economic growth will accelerate with 2% due to the improved situation in the Eurozone, the positive growth of exports and the increased trust that will bring the new agreement with the International Monetary Fund, which the Economist experts consider as necessary for the country. The report notes that despite of this, the left government has strong challenges ahead that are related with the fight against corruption, fiscal consolidation and improvement of the business climate, as a factor that stops the economic growth.
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