TIRANA, October 4/ATA/ The World Bank has kept unchanged forecasts for economic growth in Albania for 2022.
In today’s publication, “Social Protection for Recovery”, the WB appreciated that Albania’s economy will grow by 3.2% this year”, while emphasizing that, in the Western Balkans, economic growth is expected to reach 3.4% this year.
According to the WB, growth is expected to remain at an average of 2.9% over the forecast horizon, as EU membership reforms and investment mitigate the negative impacts imposed by higher energy and food prices, disruptions in trade and investment.
However, the report reads that the potential growth in the region remains limited by the need for structural reforms to increase productivity, increase competitiveness and investment in human capital and strengthen governance.
Focusing on current developments, the WB notices that the war continues to weaken the global economy through significant trade disruptions and shocks to food and fuel prices.
“All together are contributing to the increase in inflation and the subsequent tightening of financing conditions in world markets. The prolongation or further intensification of the war could cause even greater economic and environmental damage, as well as increase the possibility of fragmentation of international trade and investment. The risk of financial stress also remains high, given the high levels of debt and inflation,” the World Bank report says./p.s./
