Albania: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Albania
IMF Staff Country Reports, January 24, 2025
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- Albania: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Albania
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Bibliographic details
- Published: January 24, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400298936.002
Recent economic performance
- The Albanian economy has turned in a strong performance in recent years, underpinned by prudent macroeconomic policies.
- Output is now well above its prepandemic trend thanks to a booming tourism sector.
- External imbalances have shrunk considerably.
Macroeconomic stability and disinflation
- Prudent fiscal policies contributed to a remarkable reduction in public debt.
- Proactive monetary policy, falling global commodity prices, and lek appreciation have facilitated disinflation.
- The hard-earned gains on macroeconomic stability should be safeguarded.
Financial sector soundness
- Systemic vulnerabilities in the financial system appear broadly contained.
- The banking sector remains well-capitalized and liquid with average prudential ratios well above regulatory requirements.
Structural challenges and reform priorities
- Deep structural reforms are needed to accelerate convergence.
- The groundwork for the introduction of a new property tax law—including the establishment of a fiscal cadaster—should be completed in a timely manner.
- Policies should focus on raising productivity by:
- fostering integration in global value chains,
- removing barriers to firm growth such as distortionary tax incentives and hurdles to bank lending,
- promoting technology adoption,
- improving education and training.
Source: Albania: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Albania (January 24, 2025).
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