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The World Bank said Albania's economic growth could be revised this year due to the drought.
Last year the production and the export of electricity took the lead in the economic growth.The experts claimed that the structural reforms and rapprochement with the EU should continue both in Albania and in the region.
The World Bank (WB) made these comments during the publication of the Regional Economic Report.
According to WB, Albania's economic growth for this year can be revised due to the deterrent factors, among which are the climatic conditions and the political situation.
"The political uncertainty and delays in implementing structural reforms can undermine both the business climate and the progress of EU membership, which should continue to be one of the country's main goals," said Ilda Shijaku to VOA, World Bank expert.
According to the WB report, it is vital for reforms to go forward in order to mitigate the risks and the increasing public discontent.
The World Bank says the protests that have involved some countries in the region are a sign of insecurity.
"These protests that are noticed in many Balkan countries are also related to delays in implementing structural reforms. In cases where they relate to economic uncertainty or difficult economic conditions and uncertainty about the future, the authorities of these countries should take measures to accelerate structural reforms by facilitating labor market integration through investment in human capital, improving the business climate and creating equal development conditions for all" - said Mrs. Shijaku.
According to the World Bank, the main task remains the improvement of the business climate and law enforcement, because this year the economy will grow less than last year.
"Fiscal risks are present and relate mainly to off-balance-sheet activities, including PPPs, as well as liabilities that public utilities can accumulate," said Mrs. Shijaku.
The growth in electricity production and export helped the economy increase by 1.5 per cent to a total of 4 per cent, but foreign direct investments are now at a slow pace.
Among the external risks are the trade wars begun between the states and the economic difficulties of the neighboring countries.
"Another external risk factor is a slower pace in the economic growth of EU countries, especially Italy, which recorded the recession recently. Also, there are less favorable conditions for borrowing, which would increase the borrowing cost for Albania, which is significantly exposed to foreign borrowing ", said Mrs. Shijaku.
Economic growth, according to experts, came mainly from the increase in domestic demand and the higher level of trade consumption.
Albania - the World Bank said - had an economic growth of over 4 per cent last year, the public debt declined and jobs increased, but structural reforms and the path towards the EU need to be speeded up.