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Ekonomia

The World Bank raises the alarm for the Albanian economy: High taxes and widespread informality, obstacles that hinder investments in Albania

The World Bank raises the alarm for the Albanian economy: High taxes and

Despite decades of progress, Albania continues to face serious structural problems in its economy and a lack of functioning policies. The latest report published by the World Bank and IFC on the private sector in Albania, which analyzes the main challenges facing Albanian businesses, identifies opportunities to strengthen their competitiveness and presents policy options designed to improve their contribution to economic growth and diversification. Relying on evidence from recent surveys, the World Bank report highlights constraints from high tax rates, tax administration bureaucracies, widespread informality, insufficient workforce skills, and infrastructure gaps are the main challenges facing enterprises private and investors. The report notes that the country's economic expansion has not been commensurate with productivity improvements. Low productivity growth rates within sectors have caused a sharp decline in overall productivity, and the presence of less productive informal businesses hinders the entry and expansion of more productive competitors in some sectors. The World Bank report states that because the labor and consumer markets in Albania are small and limit the development of economies of scale, supporting Albania's economic expansion will require its integration with the global economy. The World Bank and IFC suggest that to strengthen macroeconomic resilience, Albania will need to diversify its exports.

Diversification of tourist offers

"While the size of the country limits its potential to develop a wide range of industries and sectors, it suggests that diversification will need to take place within existing sectors and value chains, such as tourism, agribusiness and the automotive sector." "In the services sector, diversifying tourist offerings away from existing beach destinations will alleviate infrastructure pressures by expanding the geographical distribution of tourists and opening up to international markets." Meanwhile, in the agricultural sector, emphasis is placed on ongoing efforts to obtain international quality certificates that will enable producers to access a wider range of export destinations, especially for higher value, ready-made products. for the consumer. In manufacturing, the report suggests diversification along the automotive value chain will allow Albania to maximize its limited industrial potential. Establishing cut-off links with domestic producers of raw materials for intermediate materials and commodities can increase value-added by mitigating exposure to input price shocks.