EC publishes “Spring economic prediction”, encouraging data for Albania

Spring has arrived for the European economy, but not for every state of the Union, as seen by the Spring prediction for the economic growth in the EU and the candidate countries, including Albania, a report published by the European Commission. 

“We haven’t had such a calm spring for a long time”, declared the responsible Commissioner, Moscovici, saying that all EU states, except for Cyprus, are expected to have an economic growth this year.

“The European economy is seeing its calmest spring since a very long time. The economic spring is on our side. We have supported and improved the economy. The foreign factors and the policies have started giving results”, declared Pierre Moscovici.

The EU economy will increase this year with 1.8% in average, the highest of the past years, but Commissioner Moskavici spoke about the huge difference between the member countries, especially as regards unemployment, which is very high for Greece and Spain, at 25%, and only 5% for Germany.

There are encouraging data for Albania, which would have had the highest growth in the EU, if it was a member, although such a comparison is not valid keeping in mind the GDP per capita which is much lower compared to the EU.

The European Commission foresees a 3% economic growth for Albania this year, and 3.6% in the next year. Employment will increase with 1.3% this year and 2.9% in 2016. The deficit is expected to be at 4%, but it might get lower with 2.8% in the next year, while the allowed deficit limit in the EU Is 3%. Symbolically, the public debt is expected to drop at 72.5% from 72.7% that it was in the past year. It is expected to drop even more the year after that, at 70.5%. Unemployment is expected to be 16.8% for this year and will drop at 15.5% in 2016.

The Commission says that these positive predictions for Albania are due to the increased internal demand. The fiscal consolidation is also undergoing. The government has reiterated the readiness to pay the delayed obligations. The document says that the positive change for businesses is supported by a government oriented to reforms, by increasing the liquidity for private businesses.

Prepared by: Arta Tozaj  TCH