TIRANA (Albania), November 1 (SeeNews) – The European Bank for Reconstruction and Development (EBRD) said on Thursday it has increased its forecast for Albania's economic growth in 2018 to 4.0% from 3.8% predicted in May.
Growth is being driven primarily by private consumption, EBRD said in the latest edition of its Regional Economic Prospects report.
“Investment also made a positive contribution to growth, although the construction of the major energy projects, namely the Norwegian investment in hydropower plants on the river Devoll and the Trans Adriatic Gas Pipeline (TAP), continued to slow down following a peak in the first half of 2017,” the bank said.
Inflation has stayed below the Bank of Albania’s target of 3.0%, averaging 2.1% in the first eight months of 2018, the bank noted, adding that the short-term outlook remains positive but risks remain.
The EBRD expects Albania's economy will grow by 3.9% in 2019. In 2017, Albania’s economy expanded by 3.8%, compared with growth of 3.4% in 2016, according to EBRD estimates.
The EBRD expects economic growth of 3.5% in 2018 and 3.2% next year in Southeast Europe.