TIRANA, April 18
“Albania has made some progress and is moderately prepared in developing a functioning market economy,” the EC country report says for the Albanian economy.
The European Commission published the country reports for the six Western Balkan countries and Turkey where among others it highlights the situation of economic criteria.
- The report says that economic growth increased and the unemployment rate decreased, but despite that, it is still high.
- The public debt-to-GDP ratio and the current account deficit have been reduced.
- The banking sector is stable and non-performing loans have been reduced. However, bank lending to businesses remains sluggish.
- Reforms crucial to improving the business environment progressed but require further efforts, including reduction of the informal economy.
- The comprehensive judicial reform advanced but needs to be fully implemented.
- The new bankruptcy law entered into force and should strengthen the insolvency regime. However, business-relevant regulations remained cumbersome and shortcomings in the rule of law continued to hamper businesses and deter investments.
- Albania has made some progress and has some level of preparation in terms of capacity to cope with competitive pressure and market forces within the EU. Specifically, progress was made on energy and transport infrastructure and digitalization, although shortcomings remain which hinder Albania’s competitiveness and trade.
- The quality of education needs to be raised at all levels, not least to better equip people with skills that the labor market needs.
- Foreign trade remains below potential and sectorally concentrated.
- Albania’s capacity for research, development, and innovation remains low.
News Source: europa.eu