This report covers the key macroeconomic and financial releases as well as the political events from Albania for the period of December 13, 2016 – January 11, 2017. World Bank says Albanian economy to expand by 3.5% in 2017, 2018 Albania amends TAP gas pipeline deal to increase financial benefits EC pays out €13mn to Albania for public administration, employment, reforms Albanian parliament adopts 2017 state budget, deficit at 2% of GDP Two MPs among first victims of Albania's decriminalisation law Albania’s Constitutional Court rejects opposition request to revoke vetting law Albanian justice minister urges French peer not to extradite Haradinaj IMF ready to discuss new deal with Albania following June election Key points: • Albania's inflation accelerates in December 2016, but stays below target • Albania’s public debt reaches €7.84bn at end-September • Tourism revenues jump 25% in Q3 • 11-mo trade gap widens 13.4% y/y • Albania’s Q3 public sector average wage up 1% y/y • Number of building permits issued in Albania jumps in Q3