Albania Country Economic Memorandum : Strengthening the Sustainability of Albania’s Growth Model
Albania is gradually emerging from the unprecedented economic disruptions caused by the coronavirus disease 2019 (COVID-19) pandemic. As the pandemic is overcome, it is crucial to shift attention back to Albania’s long-term objective of building a...
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| Format: | Report |
| Language: | English |
| Published: |
Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099845001312232607/P1752090e8141b05a08afc06ea6bc385da3 http://hdl.handle.net/10986/37175 |
| Summary: | Albania is gradually emerging from
the unprecedented economic disruptions caused by the
coronavirus disease 2019 (COVID-19) pandemic. As the
pandemic is overcome, it is crucial to shift attention back
to Albania’s long-term objective of building a stronger
underlying economic growth model. This country economic
memorandum (CEM) highlights 4 key priorities to help Albania
identify the next steps in its structural reform agenda.
Albania needs to refocus attention on the pre-crisis reform
agenda and accelerate long-term economic growth, including
by spurring productivity growth, building human capital, and
supporting investment. On the labor supply side, this means
investing in people and supporting workers’ transition to
better employment (Priority 1), while on the labor demand
side, this means accelerating firm productivity growth and
creating better job opportunities (Priority 2). But Albania
should also use the current crisis to set its aspirations
higher. Beyond achieving higher economic growth,
policymakers need to strengthen the quality of the country’s
socioeconomic development model. Through more green,
resilient, and inclusive development (GRID), Albania can
ensure the sustainability of economic growth (Priority 3).
Foundationally, this CEM highlights the need for Albania to
create fiscal space to support its growth priorities
(Priority 4). The COVID-19 crisis has driven public debt to
new heights, and upgrading Albania’s growth model -
including by implementing many of the reforms presented in
this CEM - will require further public spending. |
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