April 6 (SeeNews) - The World Bank confirmed on Thursday its November forecast for Albania's economic growth at 3.5% in each of 2017 and 2018.
The projections made for the 2017 and 2018 in the Spring 2017 Western Balkans Regular Economic Report are the same as in the report's autumn edition and the World Bank's Global Economic Prospects Report issued in January 2017.
Albania's economic growth is expected to accelerate to 3.8% in 2019, the World Bank said in the Spring 2017 report published on the bank's website. In its January Global Economic Prospects Report the World Bank predicted a slightly lower growth rate in Albania in 2019, of 3.7%.
"Private investments in two large energy projects will continue to support growth, aided by private consumption as the labor market improves, and net exports supported by demand from the EU," the World Bank said in the Spring 2017 Western Balkans report. Under two large energy projects the bank means the Trans-Adriatic gas pipeline (TAP) and the Devoll hydro power plant.
"Construction, tourism-related services, and trade are expected to continue driving growth," the bank added.
Consumer price inflation is expected to gradually reach the Albanian central bank's target of 3%, as the economy is growing further and the private consumption is recovering, the World Bank said.
The bank recommended to the Albanian government to keep the economy stable by continuing judicial reform, enhancing the management of public investments, addressing the high level of non-performing loans and improving the skills of the labour force.
The World Bank's Spring 2017 forecasts and estimates for 2016 for the main economic indicators in Albania follow:
Albania |
2016 |
2017 |
2018 |
2019 |
Real GDP growth (percent) |
3.2 |
3.5 |
3.5 |
3.8 |
Consumer price inflation (percent) |
1.3 |
1.5 |
2.9 |
3.0 |
Public debt (percent of GDP) |
67.8 |
64.7 |
64.0 |
63.5 |
Trade balance (percent of GDP) |
-18.2 |
-19.4 |
-18.5 |
-17.1 |
Remittance inflows (percent of GDP) |
7.2 |
6.9 |
6.7 |
6.5 |
Current account balance (percent of GDP) |
-12.1 |
-13.7 |
-13.0 |
-11.8 |
Foreign direct investment inflows (percent of GDP) |
7.1 |
8.0 |
6.9 |
5.3 |
source: The World Bank