WB halves prediction for Albania’s growth

Erjon Luci, an economist of this bank in Tirana, declared that besides the global crisis, the economy is also hit by a domestic factor.

“Our predictions show that the indicator has been reduced due to inner problems that we have in this sector. Another factor is energy and the consequences of the crisis”, Luci declared.

The Bank says that the economic downfall will damage mostly the economies with small revenues, who are threatened by food prices.

“Albania remains among the mostly endangered countries for food prices, due to the high percentage that food expenses occupy in the budget of Albanian families”, Luci underlined.

During the presentation of the report for economic growth in Southeaster Europe, the bank asked the government to accelerate the reforms to soften the consequences of the crisis, starting with the most urgent ones.

“Many countries in the region have accumulated due payments to the private sector, and one of the accelerated steps is that these obligations should be paid as soon as possible. This is a matter of fiscal management, and a matter of a change in the business climate and the private sector. This is a measure that should not be postponed”, declared Kseniyja Lvovski, Director of the World Bank for Albania.

Despite this correction, the World Bank says that the economy of Albanian has a higher growth than the average in the region, which has entered this year in recession with the production shrinking with 0.6%.

The Bank assesses that Albania will have an economic increase of 1.6% in the next year, same as the average of the region.

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