IMF expects Albania's GDP to grow 3.7% in 2022

Albania's economic growth is expected to decelerate to about 2% in 2023 as a result of the tightening of financial conditions, the crisis in Europe, and decline in policy support.

"Driven by food and energy prices, inflation has risen and has become increasingly broad-based. Headline inflation is expected to peak in the coming months and should start receding in 2023 before returning to the central bank’s target of 3% by mid-2024, as international commodity prices stabilise, fiscal and monetary policies tighten, and growth slows," the IMF said.

The future holds a great deal of uncertainty for Albania's economy, the IMF noted, adding that risks to growth are tilted to the downside, while those to inflation are on the upside.

A significant risk is further rise in food and energy prices. Risks are mitigated to some degree by Albania’s high level of FX reserves, the IMF said.

In 2021, Albania's GDP grew by 8.54% after decreasing by 3.48% in 2020, according to earlier estimates by the national statistical office.