Albanian economy’s main indicators improved during last three years as the country concluded three-year IMF supported program, the International Monetary Fund (IMF) said.

The fund said Albania drew last week the last installment of a SDR 295.42 million ($400.4 million) credit line, successfully concluding its three-year program aimed at restoring economic growth and controlling the rapidly rising public debt that had threatened the stability of the economy.

 “The program has successfully put Albania on a recovery path with sound public finances,” said Anita Tuladhar, the head of the IMF team for Albania. “Thanks to the commitment of the Albanian authorities, we could support reforms that are critical to growth. The program strengthened the institutional framework, reduced vulnerabilities of the economy, and helped maintain economic stability despite difficult external conditions.”

The IMF said that Albania’s GDP growth raised to 3.4 per cent in 2016, up from 1 pwr cent in 2013.

The fund said the budget gap narrowed by 3 percent of GDP, helped mainly by growing tax revenues; public debt declined from its peak of 73.7 percent; the budget now records a surplus before payments of interest on the country’s debt.

IMF said the reform of the pension system and the electricity sector has advanced considerably, lowering the two sectors’ reliance on budget support.

Main Indicators of Albania 

  2013 2016
GDP growth (percent) 1.0 3.4
Primary balance (percent of GDP) -2.0 0.2
Overall balance (percent of GDP) -5.2 -2.2
Tax revenues (percent of GDP) 22.0 24.3
Non-performing loans (percent) 23.5 20.4

However, the IMF says Albania must continue efforts to reinforce its growth and the resilience of its economy, by continuing efforts to lower the public debt and borrowing needs; reform property tax and reduce tax exemptions; make public financial management more efficient and modernize the tax administration.

The International Monetary Fund said Albania must press ahead with the recently launched, EU-supported justice reform initiative and related structural reforms to address governance concerns and an inefficient justice system./tvklan.al