Economic growth starts to accelerate
Overview:
The Albanian economy has proved robust during the global economic crisis recording positive growth in both 2009 and 2010. Indeed, after a temporary slowdown GDP growth picked up strongly towards the end of 2010. The current account deficit has fallen (but still remains significant), the fiscal deficit is contained and inflation is relatively low (even if it is has just risen through the top of the target band). Tighter fiscal and monetary policies are expected and will help to reduce existing macroeconomic imbalances as the recovery continues. However, a smaller current account deficit has partly resulted from a weaker exchange rate. Structural reforms will have to be implemented if the export base is to become stronger in the medium-term. Political developments also endanger EU Accession negotiations.