London Report Makes Upbeat Forecast on Albania Economy

Albania's GDP is expected to show better-than-expected growth during this year and in 2018, as result of a good climate for domestic and international investment as well rising private consumption.

BMI, a London-based research firm that provides macroeconomic, industry and financial market analysis, upgraded the GDP growth forecast for Albania to 4 per cent in 2017, up from a previous estimate of 3.6 per cent.

"We now expect growth to come in at 4.0 per cent in 2017, up from a previous estimate of 3.6 per cent, as the external sector continues to benefit from better-than-expected real GDP growth in the eurozone," it reads.

Growth in 2018 is expected to counter a regional slowdown as BMI researchers believe the good local climate will help overcome it.

"We have upgraded our 2018 growth forecast for Albania to 3.7 per cent from 3.3 per cent, as easy monetary policy and decreased perceptions of political risk will support investment and private consumption," it reads.

Considering the country's economy to be on a strong footing, BMI emphasises that besides the expected boost from the Trans Adriatic Pipeline, TAP, and falling unemployment, Albania has been helped also by the external environment.

"At the start of 2017, our growth forecast for Italy - Albania's main trade partner - was at 0.9 per cent but we have made successive upward revisions and the forecast now stands at 1.4 per cent," it explains.

While the report takes account of the inflation rate and Central Bank monetary policies, it emphasises Albania's relative political stability as a positive factor.

According to it, the outlook for investment has also been bolstered by the relatively smooth passing of the June general elections, which "saw the Socialist...