This 2008 Article IV Consultation highlights that over the last decade, Albania’s macroeconomic performance has generally been strong and per capita GDP in U.S. dollar terms more than doubled. Strong fiscal policy, largely based on major improvements in tax administration, lowered public debt...

In this study, the following statistical data are presented in detail: GDP by sector of origin, construction of cost index, consumer price subsidies, agricultural production, production and yields of selected fruits, consumer price index, population, labor force, and employment, employment and...

The Kosovo crisis in March 1999 and the large influx of refugees placed a considerable strain on the country. Progress in structural reforms has been significant considering the Kosovo crisis. The process of privatizing about 520 small and medium-size enterprises was completed, contracts were...

This paper reviews the developments in the social safety net system of Albania since the beginning of its economic adjustment program in mid-1992 through the third quarter of 1995. It shows that the social safety net system was quickly reformed, and that this allowed Albanian authorities to...

Albania’s macroeconomic performance over the past year has been good, with strong growth and a significant reduction in poverty under the Poverty Reduction and Growth Facility Arrangement. Executive Directors commended the new strategy for maintaining the macroeconomic stability, enhancement...

Inflation in Albania fell rapidly once comprehensive stabilization policies and market-oriented reforms were launched, in contrast to other transition economies, where price liberalization was generally followed by persistently high inflation. The early reduction of underlying inflation is...

This paper examines developments in Albania’s income distribution and poverty during the transition to a market-oriented economy. It pays particular attention to the impact of price liberalization on the agricultural terms of trade and production, the decline in state enterprise employment,...

This paper describes a evolution of the financial system in Albania. The paper highlights that a two-tier banking system was created following passage of a new Central Bank Law and Commercial Banking Law in April 1992. The State Bank of Albania became the Bank of Albania and retained only the...

This paper describes economic developments in Albania during the 1990s. Macroeconomic performance deteriorated in 1996, as the fiscal stance was weakened ahead of the parliamentary elections in May. Although two large public sector wage increases contributed, it was mainly revenue shortfalls...

The global crisis left Albania fairly unscathed and ushered in the needed economic rebalancing. The policy framework has been challenged in the post-crisis environment significant headwinds. Despite improvement, external imbalances remain elevated. Fiscal consolidation in terms of a more...