Optimistic forecasts of the IMF on economic growth in Albania

Optimistic forecasts of the IMF on economic growth in Albania

Tirana, 2 March 2016/Independent Balkan News Agency

The International Monetary Fund (IMF) is optimistic that economic growth in Albania will be positive and higher than the earlier predicted rate of 3,4%.

The permanent representative of IMF in Albania, Jens Reinke believes that the strengthened agenda of reforms and sustainable economic policies will lead to a positive revision on economic growth.

According to Mr. Reinke, a very good work is being done for the development of financial markets and the rating that Albania received from Standard & Poor’s is a signal that improves investors’ trust, but there is still work to do especially in diversifying the financial sector.

“Albania has a capable central bank and a large banking sector, but the financial sector has not diversified yet”, he said.

According to the permanent representative of IMF in Albania, the non financial sector is just born.

“Albania must continue with the strategy of clearing nonperformance loans and this would make the banking sector more effective in lending. This would not only help economic growth, but it would develop this sector even more”, Mr. Reinke thinks.

The IMF official expresses his support for the government’s action against informality as an instrument to fight tax evasion, tax fraud and the culture associated with them.

“The objective of the government’s action against informality is the right one and we back it. This action must become part of the strategy of taxation and customs administration, for which there’s a need to strengthen the basic functions”, Mr. Reinke suggests.

The permanent representative of IMF in Albania, Jens Reinke says that in spite of foreign commercial and financial impacts, Albania must continue its work for the improvement of the business and investment climate.

Next week, an IMF mission arrives to Albania to talk to Albanian authorities on the economic situation and the continuation of reforms. /ibna/