Albania’s liquidity has further improved; the foreign exchange reserves now cover more than 5.5 months of imports while the short-term debt ratio is at moderate level. Looking forward, the current account deficit is likely to remain large – at around 13% of GDP – driven by import-intensive energy-related projects. This large current account deficit is partly financed by foreign direct investments (FDI). Hence the country remains dependent on foreign investor confidence to finance its large current account deficit.
27 May 2020
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