Albania: Staff Report for the 2016 Article IV Consultation, Seventh Review Under the Extended Arrangement, and Request for Waiver of Applicability and Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Albania
IMF Staff Country Reports, June 9, 2016
Source details
- Canonical URL
- Albania: Staff Report for the 2016 Article IV Consultation, Seventh Review Under the Extended Arrangement, and Request for Waiver of Applicability and Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Albania
Other formats
Bibliographic details
- Published: June 9, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475519426.002
Overview and recent developments
- This paper presents an overview of recent economic developments, outlook, and risks of the Albanian economy.
- Over the past few years, Albania has successfully maintained macroeconomic stability amid a turbulent external environment.
- A sizable fiscal consolidation is underway, and public debt is projected to start decreasing in 2016.
- Growth remains sluggish due to a weak euro area recovery and risk-averse banks.
- The policy mix focuses on fiscal adjustment, while supporting growth through gradual monetary easing.
Growth, risks, and constraints
- Growth remains sluggish due to a weak euro area recovery and risk-averse banks.
- Key risks include external conditions in the euro area and domestic banking sector risk aversion limiting private credit.
Fiscal stance and public debt
- A sizable fiscal consolidation is underway.
- Public debt is projected to start decreasing in 2016.
Policy priorities and recommendations
- Lower fiscal vulnerabilities through continued consolidation.
- Revive private sector credit by cleaning up bank balance sheets.
- Continue implementing growth-friendly structural reforms.
Subject focus and keywords
- Subject: Arrears, External debt, Inflation, Prices, Public debt, Revenue administration
- Keywords: Arrears, CPI inflation, CR, economy growth, FDI, Global, headline inflation, Inflation, inflation consultation letter, inflation expectation, ISCR, price, rate