World Bank Report highlights Albania’s path to higher income status
According to the World Bank’s latest World Development Report for 2024, Albania is currently classified as an upper-middle-income country, with per capita income levels between $4,466 and $13,845.
Since 1990, Albania has made significant progress in advancing from low-income status and reducing extreme poverty. However, the challenge now is to build on these achievements and aim for high-income status within the next two to three decades.
The report focuses on the “middle-income trap,” emphasizing that continued investment in education and technology is crucial for Albania to achieve its economic aspirations. To transition from upper-middle-income to high-income status, Albania must foster an economy driven by innovation and enhance human capital. Governments in countries like Albania are advised to adopt and integrate advanced technologies and ideas from abroad to stimulate development.
In recent years, Albania has prioritized educational development, including internationalizing higher education and diversifying vocational training. These initiatives, along with increased investments in critical economic sectors, have contributed to both economic and social progress. The country’s economy is increasingly oriented towards technology and scientific research, with universities playing a key role in knowledge-based prosperity.
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Bank of Albania strengthens measures for non-banking institutions
Published on September 19, 2024
Why does it matter?
The recent regulatory changes by the Bank of Albania are crucial, especially following the 2023 microcredit scandal involving companies like MCA. Borrowers were deceived through hidden fees, manipulated property auctions, and excessive interest rates, causing financial distress. By tightening controls on interest rates and loan approvals, the new regulations aim to prevent such abuses and restore public trust in non-banking institutions. The focus on transparency and stronger financial assessments will protect consumers from predatory practices, ensuring a more stable and responsible lending environment, essential for Albania’s financial system.
Foreign direct investments in Albania reach €749 million in first half of 2024
Published on September 19, 2024
Why does it matter?
FDI is crucial for Albania’s long-term economic development. It injects fresh capital that helps drive infrastructure projects, supports the growth and expansion of businesses, and creates new job opportunities, boosting overall employment levels. Furthermore, a significant rise in FDI reflects increasing confidence from international investors in Albania’s economic potential, political stability, and legal framework, which can pave the way for more diversified investments and further integration into the global economy.
Government approves 4.1% pension indexation
Published on September 18, 2024
Why it matters
Despite recent wage increases for public administration and various professional categories, which have brought the average salary to 900 euros, pensions have not been adjusted for several years. Prime Minister Edi Rama has promised not only indexation but also the launch of a national discussion on increasing pensions.