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Economic Situation
Albania has achieved strong positive economic growth over the recent years, despite the impact of the global financial and economic crisis. The GDP growth in 2010 was 3.5 % and in 2011 it has reached 3.9%.1
The pursuits of macro-prudential policies and well-anchored structural reforms, focusing on privatizations, fiscal probity, trade liberalization, the business climate, energy and financial sectors, have enabled Albania’s economy to be the most resilient of South-Eastern European economies.
In their last reports up to date (September 2012), the global rating agencies “Moody’s Investors Service” and “Standard and Poor’s”, reaffirm their previous credit ratings (B1 from Moody’s and B+ from S&P) and their “stable” outlook for the Albanian economy. According to these reports, Albania has made significant progress in improving its economic and institutional strength since the late 1990s, albeit from very low levels. The economy remained relatively resilient during the global financial crisis of 2008-09.
They emphasize that Albania has demonstrated in the last years a steady economic growth of 4%. Besides the economic growth over the last years, the agencies highlight the high growth potential of the Albanian economy over the next years.
| ALBANIA-Basic Economic Indicators | |||||||
|---|---|---|---|---|---|---|---|
| 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |
| Real Growth GDP | 5.7 | 5.4 | 5.9 | 7.5 | 3.3 | 3.91 | 2.72 |
| GDP (mln ALL ) | 814,796 | 882,209 | 967,670 | 1,089,293 | 1,148,082 | 1,222,462 | |
| Nr of Employees (in 000) | 932.0 | 935.1 | 939.0 | 974.1 | 899.3 | 916.9 | 929.92 |
| Unemployment % | 14.1 | 13.8 | 13.2 | 12.5 | 13.6 | 13.5 | 13.32 |
| Inflation % (eoy) | 2.0 | 2.5 | 3.1 | 2.2 | 2.28 | 3.56 | 3.45 |
| Budget Balance (with grants, GDP %) | (3.5) | (3.3) | (3.5) | (5.5) | (7.0) | (3.1) | 3.5 |
| Public Debt (GDP %) | 57.4 | 56.2 | 53.5 | 54.8 | 59.7 | 58.52 | |
| External Debt (GDP %) | 17.2 | 16.6 | 15.3 | 18.0 | 23.4 | 25.19 | |
| Current Accounts (w/t official transfers, GDP %) | (10.0) | (7.3) | (11.4) | (15.8) | (15.9) | (12.3) | (12) |
| Exchange rate, ALL/USD | 99.9 | 98.1 | 90.4 | 83.9 | 95.0 | 103.9 | 100.84 |
| Exchange rate, ALL/EURO | 124.2 | 123.1 | 123.6 | 122.8 | 132.1 | 137.8 | 140.34 |
| M3 aggregate (annual average) | 15.6 | 11.6 | 13.7 | 7.7 | 6.8 | 12.5 | 9.2 |
Source: Bank of Albania, INSTAT, Ministry of Finance, IMF, CIA
The Competitiveness of the Albanian Economy
An indicator of the latter is The Global Competitiveness Report 2011-2012 of the World Economic Forum, which ranks Albania at the 78th position out of 142 countries/economies, while in the 2010-2011 report Albania was ranked at the 88th position, and the 2009-2010 Report at the 96th position.
According to the World Bank Report “Doing Business, 2012”, on ‘Ease of doing business’, Albania ranks 82nd out of 183 economies. On “getting credit” and “protecting investors” Albania ranks respectively at 24th and 16th positions putting Albania among the top reformer countries.
1. Source Bank of Albania.
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