WB: Albania’s economic growth will drop to 3.6 %

The Albanian economy is stepping into a slowdown phase, which can last for several years. The warning comes from the World Bank, in its latest report on the global economic outlook. According to the WB, starting from this year, Albania’s economic growth will drop to 3.6 %, from 4% it was estimated last year. This is a significant slowdown in the country’s economic activity, which is expected to extend beyond this year. According to the World Bank, for the period 2020-2021, the Albanian economy will grow at moderate rates, on average 3.5% per year. In fact, the slowdown in the Albanian economy had been announced earlier, owing to the expectations for the fall in investment, especially those from abroad. The completion of two major energy projects, the Trans-Adriatic Pipeline TAP and the Devolli Cascade, creates a small gap in the economy, which Albania failed to replace with new major investments. The Albanian government itself predicts another scenario for the economy’s performance. According to it, the country’s economic growth will undergo an increase reaching to the level of 4.5%, but this forecast seems to be considered euphoric by the internationals. The 3.5 % drop in economic growth leads to multiple consequences, making it more difficult to alleviate poverty and increase employment. But in addition, the economic downturn makes it difficult to control public finances, which have begun to be threatened by the backlog of arrears.

/Klara Ruci/

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