TIRANA, Dec 16 /ATA/ The document of the medium-term budget program, for the period 2023-2025, revised, published in the Official Gazette, notes that the year 2022 is expected to close with economic growth of 4.1%, from the 3.7% that was predicted during the presentation of the draft budget of next year.
“After the strong recession of -3.5% in 2020, the economy has recovered strongly in 2021, at the rate of 8.5% and is expected to pursue the positive trend in the following medium term. Economic growth is predicted to be more subdued in the coming years, at a rate of 4.1% in 2022 and is predicted to average around 4% per year during the following medium-term period 2023-2025. More specifically, economic growth is predicted at 4.2, 3.9 and 3.9% respectively for the years 2023, 2024 and 2025,” the document states.
During the medium term, according to the document, economic growth will be mainly generated by domestic demand, both consumption and investments. Net foreign demand (export-import) is expected to have a moderate positive effect.
Private consumption is again expected to be the main driver of GDP growth, stimulated mainly by improved consumer confidence as well as an improvement in the labor market. “The latter are expected to be reflected in a gradual increase in wages which is further expected to stimulate the real disposable income of individuals, creating the second round effect in stimulating consumption, as well as intensifying the propensity of consumers to finance further consumption through a higher borrowing,”the decision says.
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