Albania: 2023 Article IV Consultation-Press Release and Staff Report
IMF Staff Country Reports, January 12, 2024
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- Albania: 2023 Article IV Consultation-Press Release and Staff Report
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Bibliographic details
- Published: January 12, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400263484.002
Macro resilience and outlook
- The Albanian economy "has shown remarkable resilience in the face of consecutive shocks."
- The rising role of tourism has "boosted confidence in the country’s prospects," and is "partly reflected in the steady appreciation of the lek."
- With "real rates negative and below neutral," monetary policy space exists but requires caution given uncertainty.
Inflation and monetary policy
- Returning inflation to target "will likely require some further increases in the policy rate."
- Recommendation: adopt "a flexible and data-driven approach to policy settings" because of "high uncertainty."
- Objective: ensure "inflation converges to target by early 2025."
Fiscal position and consolidation
- Elevated gross financing needs and a "moderate debt level" call for "a credible consolidation starting in 2024."
- Consolidation should be "anchored by a sound Medium-Term Revenue Strategy."
- Fiscal structural reforms are needed to "strengthen the management of public finances, investment, and fiscal risks."
Revenue, spending, and public investment priorities
- Revenue measures should be "accompanied by spending reallocation to greater outlays on climate adaptation, and education."
- Further progress in fiscal structural reforms will support better public finance outcomes and investment management.
Supply-side and structural reforms
- Recommended supply-side policies include measures that:
- "tackle corruption"
- "develop and retain human capital"
- "boost female labor force participation"
- "close infrastructure gaps"
- These policies would "amplify gains from sound and prudent policies and bolster long-term growth."
Publication metadata (selected)
- Pages: 82
- Volume: 2024
- Issue: 007
- Series: Country Report No. 2024/007
- DOI: https://doi.org/10.5089/9798400263484.002
- ISBN: 9798400263484
Source: Albania: 2023 Article IV Consultation-Press Release and Staff Report (IMF Staff Country Reports), January 12, 2024.
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