World Bank: Economic growth accelerated during 2015 in Albania

A report released by the World Bank on the Albanian economy foresees that country’s economy will continue to grow in the three upcoming years. According to the report, Albania’s economy grew rapidly in the first months of 2015 and two mayor factors that have helped the economy to increase are the improved business climate and the increase of exports.

Regarding other economic indicators, the report highlights the improvement of the Consumer Confidence and the stabilization of consumption and labor markets, although budget incomes were not allocated at the preliminary predicted amount. This was followed by a lower realization of public expenses, says the report.

Earlier this year, a World Bank report announced that Albania’s economic growth for 2015 would be only 2.7%, from 3% that it was predicted a year ago. The Bank justified this decrease by saying that massive flooding that hit the country and the reduction of crude oil production would have a direct impact in the economy of Albania. The report cites, “In the first semiannual of 2015, modest fiscal consolidations were made due to lower incomes allocated, by reducing the amount of public expenses.”

In terms of labor market, World Bank report shows that the employment rate among youth increased slightly during the second quarter of 2015. The report concludes that the economic developments in Greece may have a bigger impact in the Albania’s economy than it was predicted and that Albania’s challenges in the economic aspect are the economic growth and the creation of new jobs.

News source/photo credits: ATA