TIRANA (Albania), May 9 (SeeNews) – Albania’s poverty rate will decline to 31.3% in 2018 and 29.5% in 2019, the World Bank has said.
The poverty rate in Albania is estimated to have decreased in 2017 to 32.8%, compared to 33.9% in 2016, the World Bank said in its semi-annual report Spring 2018 Macro Poverty Outlook released earlier this week.
The poverty rate is measured as $5.5 (4.6 euro) per day based on 2011 purchasing power parity.
Albania’s economic growth is estimated to have strengthened at 3.8% in 2017 supported by investments and is projected to moderate to 3.6% in 2018, as two large FDI-financed projects in the energy sector wind down, the report reads, referring to the Trans-Adriatic gas pipeline and a hydropower plant.
"Growth will be driven by household consumption, and a pickup in exports," the World Bank said, noting that growth created jobs, contributing to poverty reduction.
However, Albania's economic prospects are vulnerable to downside risks, the bank said, adding that the government needs to implement fiscal consolidation and strengthen tax compliance to preserve the macro-fiscal stability as a foundation for growth taking into consideration the high public debt.
The government also needs to strengthen its public-private partnership management framework to contain fiscal risks from this type of partnership and to ensure that investment is cost-effective, the World Bank said.
“Harnessing growth will require progress on structural reforms improving the business climate including judiciary, financial and energy reform, strengthening the skills of its labor force and removing barriers to jobs for the population,” the report reads.
($ = 0.84124 euro)