CIA: 40% of Albanian agriculture employees in the limits of existence

CIA: 40% of Albanian agriculture employees in the limits of existence

 The business environment in Albania is poor, as 40% of the country's employees belonging to the agricultural sector are in the limits of existence, the American Intelligence Agency (CIA) estimates on 2017 economic developments in Albania.

The CIA notes that complex tax codes and licensing requirements, poor judicial system, endemic corruption, poor enforcement of contracts and unresolved ownership issues, as well as obsolete infrastructure contribute to the poor business environment in Albania, making thus difficult in attracting foreign investment.

"The agricultural sector, which accounts for more than 40% of employment and a quarter of GDP, is mainly limited to small family farms and farming, due to the lack of modern equipment, unclear property rights and small land parcels small," the CIA estimates for 2017.

The US agency noted that since 2014, the economy of Albania has improved steadily and economic growth amounted to 3.8% in 2017, but close trade ties, remittances and the banking sector with Greece and Italy make Albania vulnerable to the effects of possible debt crises and poor growth in the eurozone.

Albania's electricity supply is uneven, despite improved transmission capacities with neighboring countries. However, the government has recently taken steps to curb non-technical losses and has begun to improve the distribution network, the report notes.

Better implementation of electricity contracts has improved the financial sustainability of the sector, reducing support from the central budget. Also, with the help of international donors, the government is taking steps to improve poor road and rail networks, a long-term obstacle to sustainable economic growth.

The Albanian government has strengthened tax collection and has moderately increased wages and pensions in an effort to reduce the budget deficit.

The country continues to face high public debt, exceeding its legal limit of 60% of GDP in 2013 and reaching 72% in 2016.
CIA: 40% of Albanian agriculture employees in the limits of existence CIA: 40% of Albanian agriculture employees in the limits of existence Thursday, May 10, 2018 Rating: 5
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