Albania

Bekim Cara

Country ranking 63

Score 65.7

  • Population:
    • 2.8 million/316 million
  • GDP (PPP):
    • $26.5 billion/$16.8 billion
    • 0.7% growth/1.9% growth
    • 2.4% 5-year compound annual growth/1.2% 5-year compound annual growth
    • $9,506 per capita $53,101 per capitia
  • Unemployment:
    • 16.1%/7.5%
  • Inflation (CPI):
    • 1.9%/1.5%
  • FDI Inflow:
    • $1.2 billion/187.7 billion

7 Major Sources of Economic Power

Legal system

The district courts are trial level courts from which appeal can be taken to the court of appeals and then to the Court of Cassation. At each of the three levels, the courts are divided into civil, criminal and military chambers. Justices of the Supreme Court serve for 7 years.There is also a constitutional court with jurisdiction to resolve questions of constitutional interpretation that arise during the course of any case on appeal. In a 1993 decision, the Constitutional Court invalidated a law that would have disbarred lawyers who were active during the communist era, and ordered the lawyers reinstated. Justices of the Constitutional Court serve a maximum of 9 years.

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Competitive Markets

Albania has a 1.1 percent average tariff rate, and there are few non-tariff barriers. Banks account for over 90 percent of total financial-sector assets. Although the banking system remains relatively well capitalized, nonperforming loans have risen to over 20 percent of all loans.
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Limits on Government Regulation

The government has raised its top marginal and corporate income tax rates. The top income tax rate is now 23 percent, and the top corporate tax rate is 15 percent. Overall tax receipts remain about the same at around 23 percent of GPP. Public spending's amount to 28.2 percent of the domestic economy, and public debt is equal to around 70 percent of domestic income.
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An Efficient Capital Market

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Monetary Stability

According to the Law On the Bank of Albania, the primary objective of the Bank of Albania’s monetary policy is to achieve and maintain price stability. Global theory and practice suggest that price stability is the greatest contribution that the central bank can make to sustain the long-term economic growth of the country. By ensuring price stability, the Bank of Albania makes a direct contribution to sustaining the macroeconomic balances in the country, lowering the risk premium, promoting a stable economic growth and improving the long-term welfare, as well as safeguarding the financial system’s stability.
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Low Tax Rates

In Albania, the Personal Income Tax Rate is a tax collected from individuals and is imposed on different sources of income like labour, pensions, interest and dividends. The benchmark we use refers to the Top Marginal Tax Rate for individuals. Revenues from the Personal Income Tax Rate are an important source of income for the government of Albania.
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Free Trade

Albania's free trade shown by the graph below has risen from repressed to mostly around the same area as the United States. They allow trade between all NATO countries and most European Confederation countries as well
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IMF.Albania has the highest economic growth in Europe for 2009