WEF: Albanian Economic Growth Receding, Increase in Inequality

According to the World Economic Forum (WEF)’s Inclusive Growth and Development Report 2017, Albania’s Inclusive Development Index score of 4.02 ranks its among the worst performers in Europe, with a negative five year trend of -5.58%, showing that economical progress is slowly receding.

The Inclusive Development Index has been developed with the aim to provide “a richer and more nuanced assessment of countries’ level (and recent performance) of economic development than the conventional one based on GDP per capita alone.”

Source: WEF
Source: WEF

Although Albania shows a little economic growth (0.61%), this is accompanied by a negative five year trend in inclusion (-6.18%) and intergenerational equity (-8.51%).

This means that although Albania’s GDP is growing slightly, this is done at the expense of future generations, “at the expense of externalities such as environmental damage, reduced leisure time, or the depletion of natural resources.” The index also shows a negative trend as regards social inclusion in economic progress, meaning that the little economic growth that is registered in Albania has profited a smaller group of people than in previous years, thus increasing the overall equality in the country.