Albania - Vulnerable or Immune to Potential Risks From the Greek Crisis?

Abstract

The Greek crisis has raised many concerns about its potential effects on the fragile post-communist Albanian economy. This report analyzes the effects of the crisis, taking into account 1) structural issues related to the model of post-communist economic development and 2) conjectural challenges to crucial sectors that constitute the bilateral relations between Greece and Albania. The analysis suggests that the potential sectoral and ad hoc consequences of the crisis could prove dangerous when combined with the overall structural weakness of the economy, which suffers from increasing current balance and budgetary deficits as well as a model of development that relies largely on external sources of revenue.

Keywords: Greek crisis, economic developement, migration, Albania