October 6 (SeeNews) - Albania's gross domestic product (GDP) is expected to increase by 7.2% in 2021, the World Bank said, lifting its 4.4% economic growth forecast for the country made in June.
The country's economic growth is projected at 3.8% in 2022 and 3.7% in 2023, the World Bank said in the October edition of its Europe and Central Asia Economic Update report published on Tuesday.
The recovery of travel, construction and extractives, as well as the increased private investment, consumption and public spending lead to a stronger-than-expected economic growth of 2021, the World Bank said. Rising incomes should slightly decrease poverty, although employment and labour force participation have yet to recover and uncertainty remains high as daily Covid-19 cases are on the rise again, the lender added.
The projected economic growth in 2021 is subject to a smooth vaccination rollout, no further lockdowns, and continued recovery in services, led by tourism and construction, according to the report.
In 2020, Albania's GDP declined by about 3.31%, according to preliminary estimates released by the national statistical office earlier this year.
The World Bank forecast economic growth of 5.9% for the region of the Western Balkans in 2021.