Economic and Fiscal Situation of Albania

This is a systematic review of reports and articles published in literature and web regarding economic and fiscal situation of Albania. The economic slowdown has only led to a marginal reduction of external imbalances. The current account deficit has narrowed slightly but remains above 10 % of GDP, adding to a substantial accumulation of external liabilities over the years as reflected by a gross external debt amounting to some 52.5 % of GDP. The current account deficit expanded rapidly during the first half of 2014. During first half of 2014, the current account deficit reached 12.3 % of GDP, increasing by around 21.3 % annually. The expansion of the trade deficit was the main factor behind the higher current account deficit. Net flows to the capital and financial accounts resulted in about EUR 488.6 million during the first six months of 2014, compared to EUR 403.6 million in 2013H1. As a ratio to GDP they were valued at around 9.7 % from around 8.2 % to GDP in 2013H1. In 2014H1, the capital account recoded a higher surplus in annual terms. The financial account showed a net increase in liabilities of around 15.8 % annually.