The European Commission has issued a report on the Albanian economy performance during 2014 and the efforts of the government in the implementation of economic criteria which are part of country’s EU integration process. According to the report, Economy and Finance Directorate of the European Commission has evaluated positively Albania in becoming a functioning market economy, by progressing continually.
As for the macroeconomic aspect, Albania has maintained its stability by paying the outstanding debts to businesses and by improving tax administration’s performance. This has brought revenues increase, however, the economic growth deterred since the current account deficit is still at high levels and the competitiveness as well.
According to the EU report, the public debt is still at high levels and the inflation remains low, which brought the decrease of the interest rate by Bank of Albania at its lowest historic level. Despite this move, there was not noticed lending increase as a consequence of nonperforming loans at second tier banks. The unemployment rate is still high and the informal economy as well, is written at the report. Albania should increase efforts in decreasing unemployment and illegal work level.
The report says that the country should also continue its efforts in the fiscal consolidation, aiming to decrease the public debt and the removal of barriers regarding the private sector development is a necessity in order to improve the business climate.
The report underlines that Albania’s economy should be able to withstand the EU competition and market’s pressure in midterm periods. Another advice given by the Economy Commission relates to the necessity to accelerate the implementation of structural reforms.