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World Bank lowers Albania’s 2020 GDP growth forecast to 3.4%

World Bank lowers Albania’s 2020 GDP growth forecast to 3.4% Albania flag

TIRANA (Albania), January 9 (SeeNews) – The World Bank has lowered its projection for Albania’s economic growth in 2020 to 3.4% from 3.7% projected in June last year, figures show.

Albania’s Gross Domestic Product (GDP) is forecast to grow in 2021 by 3.6%, 0.2 percentage points (p.p) below the June projection, according to the World Bank's January 2020 Global Economic Prospects report published on Wednesday.

The World Bank estimated Albania's 2019 economic growth at 2.9%, down from 4.1% expansion in 2018.

It forecast Albania's economic growth at 3.5% in 2022.

“In the Western Balkans, a deceleration in public investment (Kosovo), manufacturing (Serbia), and export growth (Albania, Serbia) contributed to a moderation in growth to an estimated 3.2% in 2019,” the World Bank said, adding that temporary factors related to weather and energy production dampened activity in Albania.

“Additionally, recent earthquakes in the Western Balkans— primarily affecting Albania—took a heavy toll on human life and physical infrastructure,” the global lender said, adding that the outlook for the subregion remains challenging as falling business confidence and heightened uncertainty coincide with a worsening external environment.

According to the report, the Western Balkans region comprising Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro, and Serbia, will achieve economic growth of 3.6% in 2020. Growth in the region is projected at 3.8% in both 2021 and 2022.