World Bank2013-07-082013-07-082004-12-27https://hdl.handle.net/10986/14383While Albania 's performance has been impressive, there are concerns about the sustainability of high rates of economic growth in the future. The evidence from the growth accounting exercise indicates that total factor productivity growth from post-transition reallocation is gradually coming to an end. At the same time, the contribution of capital accumulation has only picked up modestly. This suggests that in order to sustain high GDP growth going forward, Albania must seek to raise its investment and, secondary school enrollment rates, increase the degree of trade integration, and improve institutional quality (governance). Worryingly, total factor productivity growth has slowed significantly in recent years while the contribution of factor accumulation was negligible. Neither remittances nor earnings from illegal activities constitute a solid basis for long-term economic development. There are signs, already, of a decelerating trend in the level of remittances. Furthermore, there are concerns about the financing of the country's investment needs over the medium term. The likelihood that Albania's access to concessional financing sources will decline, as well as expectations for dwindling external support and inflows from abroad, presents major risk factors that must be mitigated with the help of the donor community.CC BY 3.0 IGOAGEDAGRICULTURAL PRODUCTIONAGRICULTUREALLOCATIVE EFFICIENCYANNUAL REPORTBENCHMARKCITIESCLIMATECOMPETITIVENESSCORRUPTIONDECENTRALIZATIONDEVELOPMENT STRATEGYECONOMIC ANALYSISECONOMIC DEPENDENCYECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC SECTORSEDUCATIONEMIGRATIONEMPLOYMENTEXCHANGE RATEEXCISE TAXESEXERCISESEXPENDITURESEXPORTSEXTERNAL COSTSFAMILIESFISCAL DECENTRALIZATIONGDPGDP PER CAPITAGROWTH RATEHEALTHHUMAN CAPITALHUMAN DEVELOPMENTIMPORTSINFLATIONINFLATION RATEINNOVATIONINTEREST RATESINTERNATIONAL TRADELABOR FORCELABOR PRODUCTIVITYMACROECONOMIC PERFORMANCEMACROECONOMIC STABILITYMACROECONOMIC STABILIZATIONMACROECONOMICSMIGRATIONMINESMONETARY POLICYMONEY SUPPLYMULTILATERAL TRADENATIONAL INCOMENEGOTIATIONSPARTNERSHIPPOLLUTIONPOVERTY ALLEVIATIONPOVERTY LINEPRIVATE SECTORPRODUCTIVITY GROWTHPUBLIC EXPENDITUREPUBLIC SECTORPUBLIC SECTOR EMPLOYMENTPUBLIC SERVICESPUBLIC SPENDINGREAL GDPREAL INTEREST RATEREHABILITATIONRESOURCE ALLOCATIONRESOURCE USERISK FACTORSRURAL WATERRURAL WATER SECTORSANITATIONSANITATION SERVICESSAVINGSSCHOOLSSERVICE DELIVERYSERVICE PROVISIONSERVICES SECTORSOCIAL SERVICESSUSTAINABLE WATERTAX RATESTAX REFORMSTAX REVENUETOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTRADE BALANCETRADE DEFICITTRADE LIBERALIZATIONTRANSITION ECONOMIESTRANSPARENCYUNEMPLOYMENTUNEMPLOYMENT RATESVALUE ADDEDWorld Bank10.1596/14383