Albanias government confirms its 2012 GDP forecast of 4.3%.

By bne IntelliNews February 7, 2012
The Albanian economy is projected to grow by a real 4.3% in 2012, the government said in its economic and fiscal program for the 2012-2014 period, confirming its previous forecast made in December. GDP growth will accelerate to 5% in 2013 and will slightly ease to 4.9% in 2014. In our view, authorities remain rather optimistic considering the negative effects of the euro zone debt crisis and the economic turbulences in Albanias main trade partners. However, the base line scenario envisages that final consumption will be the key economic driver in 2012. It is forecasted to grow by real 2.1% in 2012, contributing by 1.9pps to the economic growth. Investments are forecasted to grow by 3.9% contributing by 1.3pps in GDP this year. Over the medium-term both final consumption and investments will remain key growth drivers. On the supply side, services, agricultural and industrial are expected to have the highest contribution in economic growth in mid-term. Albanian government targets to keep the budget deficit at 3% of the GDP in both 2012 and 2013, while the gap is projected to decline to 2.5% of GDP in 2014. Efforts for consolidation will be focused mainly on the expenditure side. The ratio of budget spending to GDP will decline from 28.7% of GDP in 2012 to 28.3% in 2014. Revenues will pick up only marginally to 25.8% of GDP in 2014. The level of the public debt is forecasted to drop to 59% of GDP in 2014 as compared to 58.9% of GDP in 2011. Public investments will be focused on priority sectors, such as education, infrastructure, health care, and agriculture.
Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Albania calls tender for supervision of sewerage project.

Albania has called a tender to select a company to supervise the construction and supplies for a sewerage system and waste water treatment plant in Velipoja area, the European Commission informed ... more

Albania's govt approves changes in concession agreement for Devoll project.

The Albanian government has approved changes in the concessionary agreement for the Devoll Hydropower cascade, which formally enables Austrian EVN to exit from the project, the cabinets press ... more

Albanian parliament panel endorses EUR 12.7mn EBRD loan for dam safety project.

The economy and finance committee of Albanias Parliament has approved a EUR 12.7mn loan from the European Bank for Reconstruction and Development (EBRD) to be used to fund a project for upgrading ... more

Follow Us On

Most Read

  1. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    7 days ago
  2. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  3. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    8 days ago
  4. Don't mention the "D" word - Ukraine
    5 days ago
  5. UBN: The US Needs to Wake Up
    5 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    25 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    30 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. BRICS announce a blockchain-based payment system to create a common currency
    28 days ago
  5. Saudi Arabia to scale back plans for Neom city
    15 days ago

Reports

Dismiss