Albanian Economy

Since the fall of communism, Albania has made some progress towards becoming a modern liberal democratic state.

The country decided in 1991 to create a land-owning democracy. There are around 500,000 smallholder farmers producing good quality, fresh food, always on sale in markets in the main towns. Less than 10% of the population now live in public housing.

It's true that there are half-built houses on the road from the airport, but Albania has, in fact, built more homes of good quality per head of population than the some countries in Western Europe.

MAJOR MACRO ECONOMIC INDICATORS

  2014 2015  2016(f)  2017(f)
GDP growth (%) 1.8 2.8 3.3 3.6
Inflation (yearly average) (%) 1.6 1.9 1.0 1.8
Budget balance (% GDP) -6.0 -4.8 -2.5 -2.2
Current account balance (% GDP) -12.9 -11.2 -13.0 -14.0
Public debt (% GDP) 72.1 72.7 73 71

 

(f) Forecast

Albania has natural resources and a strong hydroelectric potential. The population is young and the country has a valuable access to the Sea.

However, according to European standards, it remains a poor country with insufficient infastructures, low level of education, massive corruption and organized crime.

2017 Index of Economic Freedom