EBRD lowers Albania's 2011 GDP growth forecast to 2.5%.

By bne IntelliNews July 27, 2011
Albanias economy is expected to grow by 2.5% in 2011, the European Bank for Reconstruction and Development (EBRD) said in its updated July 2011 Regional Economic Prospects report, revising downward its outlook from 3% forecast in May. Albania will be among the fastest growing economies in Southeast Europe, preceded only by Serbia (3.3%) and Macedonia (3.1%). In 2012, however, the countrys gross domestic product is seen to accelerate to 3.1%, but still down from Mays forecast of 3.3%. The growth will be well below the SEE average of 3.7%. The economic growth will be driven by exports and industry, EBRD said adding that the country is particularly vulnerable to a serious Greek downturn. Albanias inflation is to speed up to 4.3% in 2011 from 3.5% in 2010. The countrys budget deficit will reach 4.6% of the GDP, up from 3.7% in 2010. The current account gap is projected at 11.2% of the GDP in 2011, compared to 10.1% last year. Net foreign direct investments are to fall to 5.5% of the GDP from 6.8% in 2010. IntelliNews comment : According to the July 2011 Regional Economic Prospects, published by EBRD on July 22 , Albanias economy was projected to grow by 5.1% in 2011 and by 1.9% in 2012. The financial institution has not provided an explanation for the forecast revision.

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

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335