The ongoing war in Ukraine and consequent sharp increase in energy prices and slowdown in the global economy are likely to constrain Albania’s growth path. Following robust GDP growth in 2021, the country’s growth is likely to decelerate to 3.2 percent in 2022, says the latest Western Balkans Regular Economic Report .
Albania’s economy expanded by 6 percent in the first quarter of 2022, driven by private consumption, exports, and investment. The labor market improved and unemployment fell to 11.3%. After significant reduction in 2021, poverty is expected to continue declining, but rising inflation pressure will slow the recent gains.
In response to higher food prices, the government has increased budget allocations for support to vulnerable groups, which are already benefiting from regulated electricity prices.
For more information, please read: https://www.worldbank.org/en/news/press-release/2022/10/24/amid-ongoing-shocks-albania-needs-policies-and-reforms-that-boost-growth