TIRANA, Jan. 11 – The World Bank has kept unchanged Albania’s 2016 and 2017 growth prospects but revised downward the 2018 forecast by 0.3 percent to 3.5 percent.
In its latest Global Economic Prospects report published this week the World Bank expects the Albanian economy to have grown by 3.2 percent in 2016 and pick up to 3.5 percent in 2017 and 2018, forecasts which are slightly lower compared to the government’s more optimistic expectations.
“Growth accelerated in Albania, Croatia, Romania, and Serbia reflecting strong domestic demand supported by low energy prices, faster investment growth helped by the disbursement of EU structural funds, labor market improvements, particularly in Albania,” says the report.
The report warns financing needs in excess of reserves and high public debt levels remain a threat for Albania’s economy.
“Albania, Georgia, the Kyrgyz Republic, and Turkey are running current account deficits, which are often financed by volatile portfolio flows. Albania, Belarus, Croatia, Hungary, Montenegro, Poland, and Ukraine, are at risk from elevated sovereign debt levels,” warns the World Bank.
“Growth in the Europe and Central Asia region is projected to pick up to 2.4 percent in 2017, driven by a recovery in commodity exporting economies and improved confidence. The forecast depends on a recovery in commodity prices and an easing of geopolitical tensions,” adds the report.
