WIIW The Vienna Institute for International Economic Studies - Wiener Institut für Internationale Wirtschaftsvergleiche

In Albania the political stalemate after clashes during a violent anti-government demonstration in January 2011 is not expected to have a major economic impact in the short term. However, if the political system is stymied by personal animosities among the country’s leading politicians, this might prove to be a major stumbling block on the path to EU membership and subsequent EU transfers and integration into European production networks. For the period 2011-2013, we expect a gradual increase in the GDP growth rate. The forecast hinges on further recovery of the European economy and governmental stimulus of domestic demand.