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Growth is projected to improve in 2016 in Albania, leading the way for increased employment and poverty reduction, according to the latest Southeast Europe Regular Economic Report (SEERER).
Growth is projected at 3.2 percent in 2016, up from 2.8 percent in 2015, and is forecasted to reach 3.5 percent by 2018. The latest report says that the economic growth at the regional level is expected to reach 2.7 percent in 2016, up from 2.2 percent in 2015. An acceleration of this growth is also expected to continue through 2017 and 2018.
According the report this accelerating growth is helping improve employment in Albania and is working to drive down poverty in the region, notes the report. Unemployment declined. Employment was 6.7 percent in Albania in the first half of 2016, thanks to growth and labor market reforms.
"Underpinning this growth was Serbia, the regions largest economy, which moved from 0.7 percent growth last year to an expected 2.5 percent this year," says Barbara Cunha, World Bank's Senior Economist and lead author of the report. "Other economies in the region are expected to maintain growth of between 2.8 and 3.6 percent, with the exception of FYR Macedonia which experienced a slowdown relative to strong growth last year."
"Countries with strong reform programs have seen a rise in investment which became a solid driver of growth in the first half of 2016, with remarkable contributions of private investment to growth in Serbia and Albania," says Katia Vostroknutova, World Bank's Lead Economist and one of the authors of the report.
Along with reviving consumption, private investments supported by large project in the energy sector are expected to lead the recovery in Albania, contributing to 2/3 of the recovery over 2016-2018.
Ellen Goldstein, World Bank's Country Director for the Western Balkans says that "while unemployment at the regional level remains high, at around 25 percent, this figure declined in all of the countries in Southeast Europe except for Montenegro,". /albeu.com/
Published on: September 27, 2016 - 3:37 pm