FLASH
Shkruar nga Pamfleti
High prices, PPP contracts and natural disasters endanger Albania's economic perspective.
The warning was given today by the World Bank, where through the report 'Towards sustainable growth', it states that increases in food and energy prices are seen as an important risk for the economic growth of the country and the reduction of poverty in Albania.
For the WB, potential risks today are PPPs and natural disasters. The World Bank analyzes that high prices negatively affect real disposable income and slow poverty reduction and potentially limit fiscal space.
As a small and open economy, Albania is highly exposed to external shocks, such as the recession in Europe and the further tightening of financing conditions in international markets in the coming years. While potential internal risks are considered natural disasters, public-private partnerships and state-owned enterprises, as well as fiscal risks deriving from an energy sector based on hydropower plants, which mainly depend on changes in hydrological conditions.
The inflation rate is projected to begin returning to the 3% target in 2024. Public debt is expected to continue to decline over the medium term, as a result of higher nominal growth and a gradual improvement in the primary balance. Given Albania's growing dependence on external financing, exchange rate, interest rate and refinancing risks remain high.
Lini një Përgjigje