April 12 (SeeNews) - The International Monetary Fund (IMF) said on Tuesday it expects that Albania's economic growth will pick up to 3.8% in 2017 from an estimated 3.4% this year.
Albania's annual inflation is expected to accelerate to 2.5% in 2017 from the estimated 1.9% in 2016, the fund said in its latest World Economic Outlook report. By 2021 inflation is expected to reach the central bank's target of 3%, it added.
IMF also projects that the country's current account deficit will narrow to 12.6% of GDP by the end of 2017 from 12.7% of GDP this year.
The economic growth of countries from the IMF subcategory Emerging and Developing Europe which includes Albania, Bosnia and Herzegovina, Kosovo, Macedonia and Montenegro, is projected to remain broadly stable at 3.5% in 2016 and 3.3% in 2017.
"Activity in the region has benefited from lower oil prices and the gradual recovery in the euro area, but elevated corporate debt is hindering private investment," the IMF commented.
The countries in this subcategory are expected to post an average inflation of 4.8% in 2017 and 4.1% in 2016, and current account gap of 2.1% of GDP this year and 2.6% of GDP in 2017.
Last month the IMF said Albania's economic growth is expected to be driven mainly by large energy-related foreign direct investment and gradually rising consumption, and recommended faster implementation of structural reforms, with a focus on property rights, governance, and the judiciary, in order to strengthen competitiveness and to improve the investment climate.