Albania - Sustaining Growth Beyond the Transition : A World Bank Country Economic Memorandum

While Albania 's performance has been impressive, there are concerns about the sustainability of high rates of economic growth in the future. The evidence from the growth accounting exercise indicates that total factor productivity growth from post-transition reallocation is gradually coming to an end. At the same time, the contribution of capital accumulation has only picked up modestly. This suggests that in order to sustain high GDP growth going forward, Albania must seek to raise its investment and, secondary school enrollment rates, increase the degree of trade integration, and improve institutional quality (governance). Worryingly, total factor productivity growth has slowed significantly in recent years while the contribution of factor accumulation was negligible. Neither remittances nor earnings from illegal activities constitute a solid basis for long-term economic development. There are signs, already, of a decelerating trend in the level of remittances. Furthermore, there are concerns about the financing of the country's investment needs over the medium term. The likelihood that Albania's access to concessional financing sources will decline, as well as expectations for dwindling external support and inflows from abroad, presents major risk factors that must be mitigated with the help of the donor community.

Bibliographic Details

Main Author:	World Bank
Language:	English
Published:	Washington, DC 2004-12-27
Subjects:	AGED, AGRICULTURAL PRODUCTION, AGRICULTURE, ALLOCATIVE EFFICIENCY, ANNUAL REPORT, BENCHMARK, CITIES, CLIMATE, COMPETITIVENESS, CORRUPTION, DECENTRALIZATION, DEVELOPMENT STRATEGY, ECONOMIC ANALYSIS, ECONOMIC DEPENDENCY, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC SECTORS, EDUCATION, EMIGRATION, EMPLOYMENT, EXCHANGE RATE, EXCISE TAXES, EXERCISES, EXPENDITURES, EXPORTS, EXTERNAL COSTS, FAMILIES, FISCAL DECENTRALIZATION, GDP, GDP PER CAPITA, GROWTH RATE, HEALTH, HUMAN CAPITAL, HUMAN DEVELOPMENT, IMPORTS, INFLATION, INFLATION RATE, INNOVATION, INTEREST RATES, INTERNATIONAL TRADE, LABOR FORCE, LABOR PRODUCTIVITY, MACROECONOMIC PERFORMANCE, MACROECONOMIC STABILITY, MACROECONOMIC STABILIZATION, MACROECONOMICS, MIGRATION, MINES, MONETARY POLICY, MONEY SUPPLY, MULTILATERAL TRADE, NATIONAL INCOME, NEGOTIATIONS, PARTNERSHIP, POLLUTION, POVERTY ALLEVIATION, POVERTY LINE, PRIVATE SECTOR, PRODUCTIVITY GROWTH, PUBLIC EXPENDITURE, PUBLIC SECTOR, PUBLIC SECTOR EMPLOYMENT, PUBLIC SERVICES, PUBLIC SPENDING, REAL GDP, REAL INTEREST RATE, REHABILITATION, RESOURCE ALLOCATION, RESOURCE USE, RISK FACTORS, RURAL WATER, RURAL WATER SECTOR, SANITATION, SANITATION SERVICES, SAVINGS, SCHOOLS, SERVICE DELIVERY, SERVICE PROVISION, SERVICES SECTOR, SOCIAL SERVICES, SUSTAINABLE WATER, TAX RATES, TAX REFORMS, TAX REVENUE, TOTAL FACTOR PRODUCTIVITY, TOTAL FACTOR PRODUCTIVITY GROWTH, TRADE BALANCE, TRADE DEFICIT, TRADE LIBERALIZATION, TRANSITION ECONOMIES, TRANSPARENCY, UNEMPLOYMENT, UNEMPLOYMENT RATES, VALUE ADDED,
Online Access:	http://documents.worldbank.org/curated/en/2004/12/5547762/albania-sustaining-growth-beyond-transition-world-bank-country-economic-memorandum https://hdl.handle.net/10986/14383
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