Albania: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Albania
IMF Staff Country Reports, January 28, 2019
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- Albania: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Albania
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Bibliographic details
- Published: January 28, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484396582.002
Macroeconomic overview and recent performance
- GDP growth was robust, projected at 4 percent in 2018.
- Inflation remained below its 3 percent target.
- The current account deficit has moderated over recent years, to about 6.5 percent of GDP.
Fiscal position and public debt
- The fiscal deficit has stabilized around 2 percent of GDP.
- This fiscal trajectory implies a modest gradual reduction in public debt, which remains high at close to 70 percent of GDP.
Monetary policy and exchange rate
- Monetary policy was relaxed further in June 2018 following a rapid appreciation of the exchange rate.
- The IMF staff view an accommodative monetary policy as part of the appropriate policy mix going forward.
Outlook and projections
- The outlook is mostly positive, with GDP growth projected to converge to 4 percent over the medium term.
- Inflation is projected to stabilize around its target by 2021.
Policy recommendations and analysis
- Further fiscal consolidation is recommended.
- An accommodative monetary policy combined with growth-promoting structural reforms represents the right policy mix.
Key statistics (as reported)
- GDP growth projected in 2018: 4 percent
- Inflation target: 3 percent
- Fiscal deficit: around 2 percent of GDP
- Public debt: close to 70 percent of GDP
- Current account deficit: about 6.5 percent of GDP
- Inflation stabilizing by: 2021
International Monetary Fund. Albania: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Albania. January 28, 2019.
Content in this bundle
- Country Report