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Economic growth has been sustained at about 6% and in the years 2009-2011 it will maintain a high growth rate of 6-7%. Gross domestic product in nominal terms was estimated at about Lek 979 billion at the end of 2007 compared to Lek 892 billion at the end of 2006, an increase of about 9%.
Gross domestic product per capita in 2007 was Lek 309611 or about 9.1% higher than in 2006. The growth of the gross domestic product per capita has had a positive effect education and living standards level across countries.
Inflation. The annual inflation rate has been maintained within the levels targeted by the Bank of Albania at about 3% (±1 %), through a cautious monetary policy that is consistent with fiscal policy.
The general balance of payments was €173 million in 2007 and foreign currency reserves were €1.5 billion. Exports grew by 27% in 2007, imports grew by 26% in 2007.
The level of unemployment fell to 13.2% in 2007 compared to 13.9% in 2006, according to official statistics. The sectors with the largest increase in the number of employees in 2007 were industry, transport, telecommunications, trade, hotels and restaurants.
Fiscal policy. Despite the drastic reduction of taxes, public revenues have increased considerably. In 2007 they were 27% of GDP compared to 25.5 % in 2006 and 24.8% in 2005.
Foreign direct investment increased by 84% in 2007 (at a level three times higher than the average of the past 10 years) as a result of government reforms to continuously improve the business climate, the privatisation process of some public enterprises, the extension of public private partnerships, and the implementation of the ‘Albania 1 Euro’ initiative.
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