Banking and financial authorities confirmed in Tirana the fastest reduction of public debt in the region.
During a meeting of the International Monetary Fund and World Bank, Albania was assessed to have one of the most stable economies in the region.
The reduction of public debt below the 60 percent level was achieved for the first time in 13 years, since 2011.
The International Monetary Fund and World Bank have evaluated that Albania’s economy is one of the most resilient in the region, with good financial performance, employment, and foreign investments.
The World Bank and IMF held their constituency meeting on Friday, for the first time in Albania. Albanian financial authorities are developing a strategy on Public Finance Management, which is one of the fundamental prerequisites for negotiations with the European Union.
Albanian Finance Minister Ervin Mete emphasized in this meeting that for the first time in 13 years, public debt fell below 60 percent, at the fastest rate in the region.
“Even in the assessments of the International Monetary Fund and World Bank, Albania emerged as one of the most resilient economies in the region, and this resilience is encouraging for the medium and long-term perspective, as well as for the health of public finances in the country. We have had good economic growth, employment, revenues, and foreign investments. Standard and Poor’s at the end of last year revised Albania’s outlook from stable to positive,” said Minister Mete.
A major challenge to be met by the Bank of Albania remains the fight against inflation, which has recently shown a downward trend, which is a prerequisite for sustainable economic growth and citizen welfare.
Governor Gent Sejko emphasized that Albania halved inflation to 4 percent and recorded economic growth of 3.5 percent, a historically low unemployment rate, as well as public debt and foreign debt below the levels of previous external financial shocks.
“2023 is on track to be the year with the highest level of foreign direct investment, once again demonstrating Albania’s attractiveness as an investment destination. The Bank of Albania has contributed to this success story. We have addressed inflation growth in time, starting the road of a gradual and careful normalization of our monetary policy,” said Governor Sejko.
Albania’s financial leaders believe that tourism has influenced the sustainability of the Albanian economy this year, which continues to face a series of setbacks, such as military conflicts, the pandemic, and earthquakes.
According to them, challenges remain in economic reforms in the energy system, employment, and pensions, especially for youth, women, and girls.
