TIRANA, January 11
While the outlook for the global economy has darkened, Albania’s economic growth is projected to slow down from four percent in 2018 to 3.6 percent in 2019. The World Bank (WB) said this on its January 2019 edition of the Global Economic Prospects (GEP) report.
According to the World Bank, Albania’s GDP growth will soften further in 2020 and 2021 as it expected to be 3.5 percent.
This was anticipated due to low expectations for major foreign expectations. The completion of the two large projects in the energy sector, the Trans Adriatic Pipeline (TAP) and Devolli Hydropower will create a considerable gap in the Albanian economy. So far, the country couldn’t attract new major investments.
On its part, the Albanian government has another scenario on economic growth. According to it, Albania’s economic growth will reach up to 4.5 percent. Yet, the forecast is considered euphoric by international financial institutions.
The decline of the GDP growth rate to 3.5 percent will have multiple consequences on poverty alleviation and employment generation.
Besides those effects, it will be difficult to manage public finances.
Photo Credit: WB