IMF expects Albania's GDP to accelerate to 4 pct in medium-term outlook

Source: Xinhua| 2017-12-15 05:08:29|Editor: Mu Xuequan
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TIRANA, Dec. 14 (Xinhua) -- Albania's economy continues to strengthen thanks to rising domestic demand, large energy-related foreign direct investment (FDI), and a recovery in key European Union (EU) trading partners, Executive Board of the International Monetary Fund (IMF) said Thursday.

On the other hand, IMF considers that the accelerated donor support as part of the EU accession process could lead to higher investment and a stronger credit recovery.

On conclusion of the Article IV Consultation with Albania, IMF said that Albania's GDP growth was projected to accelerate to around 4 percent in medium-term outlook.

"The new government's clear mandate following election victory in June, the favorable economic outlook, and the prospects for opening EU accession negotiations provide a window of opportunity to resume implementing the reform agenda," IMF report read.

In this regard, IMF noted that the main policy objectives at the current juncture were to maintain macroeconomic and financial stability and to deepen structural and institutional reforms to accelerate the pace of convergence.

It further said that Albania's fiscal and financial vulnerabilities had been lowered over the past four years. However, IMF experts said that challenges remained from the high level of public debt and financing needs, non-performing loans, and pervasive institutional weaknesses that hinder investment.

Albania and IMF successfully concluded their three-year program in February 2017. However, new government formed after June 25 elections decided to establish a new relation with the IMF according to which it will have no imposing role into the economic policies of the government, but only an advisory role.