WB: Albania has an ill economy

The report compares a series of indicators that measure the economic and financial health of Eastern European countries. According to the Bank, Albania has the most deteriorated position in almost all indicators.

The first one is the real economy. Albania had the fastest growth during the past decade in Balkan, but the situation changed two years ago, when the economy plunged in a second wave of slowdown. It started in 2012, when the growth shrank to 1.3%. Last year it went down to 0.44%.

This was the lowest figure in the region, and according to the World Bank, the trend will continue even in 2014 and 2015, when the economy will keep growing slower than that of the other countries.

These are the evaluations for the real economy, but Albania has a worse position than similar economies in the financial sector. Firstly, with the public finances.

The debt of the Albanian government was the highest among the growing economies, but during the crisis it grew with 20%, compared to 2007, part of which was kept hidden by the former government.

Besides the public finances, the crisis has infected the finances even in the private sector. According to the World Bank, the level of bad loans in Albania is the highest not only in the region, but even widely, and can be compared to countries such as Ireland or Greece, which almost went to a financial collapse.

In face of this situation, the International Monetary Fund and the World Bank have proposed a series of measures to fix the economy shocked by the crisis and bad management.

Will this be enough to make Albania a fast growing economy once again? This remains to be seen. If not, the bill will be higher. Albania remains the country with the lowest revenue in Europe.

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