Intellinews - Albania Country Report - August 2012

The IntelliNews Albania Country Report is a monthly report, covering the major macroeconomic indicators and trends in Albania, as well as important political developments. Prepared by local analysts, it provides the most accurate data, updated regularly according to the data changes noted by the whole range of statistics sources. It will save the time you would need to track the figures and sources independently and will provide you with thorough analysis.

The Albanian government cut its outlook for this year’s economic growth to 3% from 4.3% and said the economy should expand by an annual 4% in 2013. Despite the downgrade, the government’s forecast is still very optimistic when compared to the estimates of the IMF, the World Bank and the EBRD. They see Albania’s 2012 GDP growth at between 1.2% to 1.8%. Albania’s economic growth slowed to 3.1% y/y in 2011 from 3.9% in 2010 and yet it was slightly above the government’s target of 3%. In 2014, the government expects the economy to expand by 4.2% and the growth to speed up to 4.5% in 2015.

Albania slipped 11 placed to rank 89 out of 144 countries in the 2012-2013 Global Competitiveness Report released by World Economic Forum (WEF). Albania scored 3.9 points out of 7 as its performance has worsened in all three set of indicators, comprising the overall index - basic requirements, efficiency enhancers and innovation and sophistication factors.

Albania’s annual consumer prices inflation accelerated for the sixth month in a row in August reaching 2.8% but the growth was slower than the 3.1% y/y rate recorded in the same month of 2011. Food prices were again the main growth driver.

Producer price inflation, on the other hand, eased to 1.5% y/y in the second quarter of 2012 from 2.5% y/y in the previous three months as manufacturing prices increased at a slower rate than in Q1.