THE ANALYSIS OF ALBANIAN ECONOMIC DEVELOPMENT THROUGH THE YEARS

Abstract

The economic situation of a country can be explained through a dynamism of a group of indicators and factors that affect the continuity trend flow of economic growth. Also, the historical aspect is one of the most meaningful factors defining a country’s development stage. Although the indication of the social and political conditions, unpredictable situations like the Covid-19 pandemic have negatively affected the economy’s growth trend. However, to evaluate the overall economic situation is necessary to consider an evaluation basis that will lead to the tendency of the living standard. The study is undertaken for the Albanian case, a country in transition based on its economic development, from 1991 to 2021. The key assessment factor considered in this study is the GDP, as one of the most meaningful evaluators of the living standard. After analyzing the Albanian economy by considering the historical phases of the economic development of this country, there is a created model for identifying the potential relations between the Gross Domestic Product, Consumption Expenditures, Trade Balance, and Foreign Direct Investments for explaining the actual living standard and generating its forecast for upcoming years. At the end of the study are given the results and the recommendations.