World Bank: Albania to boost investment in tourism, agriculture and automotive industry

Encourage investment in the private sector, especially in the agriculture and tourism sectors, and exploit market changes in the post-COVID period to help the fledgling automotive spare parts industry grow and integrate into the European supply chain. vehicle production will help create new jobs and boost Albania's economy, according to a report compiled by the World Bank Group.

The Country's Private Sector Diagnostics Report for Albania (CPSD / Report), prepared by IFC * and the World Bank, states that the private sector, as the engine of Albania's economic development, faces serious challenges, such as: access to limited funding, low level of technological improvements, lack of professional skills and shortcomings in infrastructure. However, the private sector is vital for expanding the country's economic base, promoting faster, more diversified and export-oriented economic growth.

The report also emphasizes that Albania can achieve greater and more sustainable economic growth, strengthening the integration of trade with the global economy and that of the European Union, as well as expanding the economic role of the private sector. Given Albania's small domestic market, economies of scale in production can only be achieved by integrating into global and regional value chains, a process that depends on the country's ability to attract foreign direct investment.

"The crises of recent years have shown the importance of finding new ways for the development of the private sector," said Delina Ibrahimaj, Minister of Finance and Economy.

"The CPSD report provides valuable recommendations regarding three important sectors of the Albanian economy, which have shown and continue to show their potential for sustainable economic growth in the country."

While economic openness is vital for Albania's continued growth, the reliance of the country's economy on a limited group of exports exposes the economy to volatile external factors.

"Therefore, the Report aims to assist the Albanian government in promoting strong economic growth, and in diversification and competitiveness in the economy through private sector development," said Damien Shiels, IFC Regional Commander for Europe.

“Megjithatë, siç nënvizon edhe Raporti, përmirësimi i mjedisit të biznesit dhe intensifikimi i investimeve në teknologji dhe novacion janë çelësi që Shqipëria të përshpejtojë rimëkëmbjen dhe të promovojë një sektor privat të fortë.”

“Në këto kohë të trazuara, një rimëkëmbje e shëndoshë dhe e qëndrueshme kërkon një sektor privat më produktiv dhe më të fortë,” tha Emanuel Salinas, Menaxher Zyrës së Bankës Botërore për Shqipërinë.

“Ky raport ndihmon për të kuptuar se cilat segmente të sektorit privat janë më premtuese dhe se si politikat publike mund të ofrojnë kuadrin ligjor të nevojshëm, duke i mundësuar atij që të punojë në mënyrë më efikase dhe të krijojë vende pune më shumë dhe më të cilësore.”

The World Bank Group CPSD reports provide in-depth economic analysis that identifies opportunities to unlock private sector investment and create opportunities for more people.

The World Bank Group will direct its lending, investment and private sector development advisory activities in Albania towards the sectors and reforms identified in the CPSD, and will assist the Albanian government in prioritizing actions to implement the recommendations of the Report./ Monitor