Economic development will not be halted by the crisis, even if the engines of the economy will operate at a lower speed.
After the increase of 6% at the beginning of the year, the Bank of Albania makes the projection for the Albanian economy, of a slight slowdown, but remaining in positive territory.
The blocking factors are the insecurities caused by the ongoing conflict in Ukraine, as well as the high bill for imports of goods and especially energy. This is a downturn in an economy that at the start of the war was in a very positive moment with strong export growth and healthy corporate and household balance sheets.
These balances are stretched at the moment, due to inflation, but consumption has continued to grow, while private investment is still high, mainly thanks to the construction sector, which will continue to bear the main weight of growth. , according to the central bank. .
The Bank of Albania estimates that the price increase will peak during the rest of this year, mainly due to pressure from abroad, especially on food and energy.
In June, the World Bank said Albania’s economy is expected to grow 3.2% in 2022, following an estimated 8.5% rise in 2021, slightly lowering its current-year forecast made in January.
The country’s gross domestic product (GDP) is expected to grow a further 3.5% in 2023, the World Bank said in its June 2022 Global Economic Prospects report. In January, the bank predicted 3.8% GDP growth in 2022 for Albania.
Economic growth in the Western Balkan region is projected at 3.1% in 2022, reflecting rising commodity prices and weaker eurozone growth due to the war, the World Bank noted.