Publication: Albania Country Economic Memorandum: Strengthening the Sustainability of Albania’s Growth Model
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2021-09
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2021-09
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Albania is gradually emerging from the unprecedented economic disruptions caused by the coronavirus disease 2019 (COVID-19) pandemic. As the pandemic is overcome, it is crucial to shift attention back to Albania’s long-term objective of building a stronger underlying economic growth model. This country economic memorandum (CEM) highlights 4 key priorities to help Albania identify the next steps in its structural reform agenda. Albania needs to refocus attention on the pre-crisis reform agenda and accelerate long-term economic growth, including by spurring productivity growth, building human capital, and supporting investment. On the labor supply side, this means investing in people and supporting workers’ transition to better employment (Priority 1), while on the labor demand side, this means accelerating firm productivity growth and creating better job opportunities (Priority 2). But Albania should also use the current crisis to set its aspirations higher. Beyond achieving higher economic growth, policymakers need to strengthen the quality of the country’s socioeconomic development model. Through more green, resilient, and inclusive development (GRID), Albania can ensure the sustainability of economic growth (Priority 3). Foundationally, this CEM highlights the need for Albania to create fiscal space to support its growth priorities (Priority 4). The COVID-19 crisis has driven public debt to new heights, and upgrading Albania’s growth model - including by implementing many of the reforms presented in this CEM - will require further public spending.
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“World Bank. 2021. Albania Country Economic Memorandum: Strengthening the Sustainability of Albania’s Growth Model. © World Bank. http://hdl.handle.net/10986/37175 License: CC BY 3.0 IGO.”
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