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Economic Growth and Trade

Language: English | Shqip

Conditions created for broad-based, sustainable, and inclusive economic growth

Albania has made remarkable progress since 1992 but still faces considerable economic challenges, including low levels of participation in the formal labor market, limited linkages with external markets, lack of access to capital for key drivers of growth and lingering pockets of intense poverty. Over the past several years, the financial crises of Albania’s neighbors, notably Greece and Italy, has impacted Albania and threatens to reverse the economic and political advances of the last decade and to undermine the country’s fundamental stability.

Albania needs many years of significant, sustained economic growth to approach EU income levels. Since this growth can only be accomplished by a robust, competitive private sector, Albania must create and maintain a business environment free of corruption and volatile politics to grow and prosper and, importantly, to provide jobs for a large and growing youth population. Micro, small, and medium size enterprises (about 99 percent of all enterprises in Albania) are a driving force for job creation and economic growth. Despite some improvements, Albanian private enterprises are still not equipped to respond to international trade and investment opportunities, to enhance the growth of their businesses, and to increase sales in the domestic and export markets.

USAID’s program provides targeted technical assistance that contributes to increased competitiveness, economic growth, and macroeconomic stability that will allow a standard of living in Albania that is more commensurate with greater Europe. Programs provide technical assistance, training, and capacity building with a focus on establishing conditions for growth.  In addition, programs work with financial sector to improve access to capital for key economic drivers, such as small and medium enterprises, farmers and agribusiness. USAID implements projects through local firms and organizations, public-private partnerships, and associations and businesses to leverage funds of development partners, particularly Pre-Accession Assistance, when possible.