International ratings giant Standard&Poors has warned the Albanian government to urgently improve the business climate as the economy is threatened by falling investments.
In its latest assessment report, the agency notes that the small number of investment projects on the horizon increases the risks to the Albanian economy and will slow the country’s growth. “For the 2020-2023 period we predict that the Albanian economy will grow an average of 3.5 percent annually.
But this outlook is prone to changes by falling investments and slowing economic growth in partner countries such as Greece and Italy”, stares the report.
Last year, total investments in the Albanian economy by the state budget and private sector consisted in 23.4 percent of national production.
But according to Standard and Poors, in the next four years investments will be in constant contraction and down to 19.9 percent by 2023. This decline is largely attributable to the completion of two major investments, the TAP pipeline and the Devolli dam, while there is no other project in sight as a replacement.
The agency experts underline that the only way for the Albanian economy to emerge from this, is to improve the business climate in order to attract more foreign investment. This warns Standard and Poors, will be critical to Albania’s economic outlook and increased income levels for citizens.
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